Which of the following is not a characteristic of zero-based budgeting?
A)This method of budgeting is often used in governmental entities.
B)This method of budgeting is much more time-consuming than incremental budgeting.
C)This method of budgeting encourages budgetary slack.
D)All of these answer choices are characteristics of zero-based budgeting.

Question

Quizplus · Accepted Answer

Zero-based budgeting is a method of budgeting in which all expenses must be justified for each new period. This method is often used in governmental entities and requires a significant amount of time to complete. However, it does not encourage budgetary slack. In fact, it encourages managers to critically examine all expenses and eliminate unnecessary or redundant costs.

Which of the Following Is Not a Characteristic of Zero-Based