Which of the following is a key characteristic of a zero-based budget?
A) A zero-based budget provides estimates of costs that would be incurred under different levels of activity.
B) A zero-based budget maintains focus on the budgeting process.
C) A zero-based budget is prepared each year and requires each item of expenditure to be justified.
D) A zero-based budget uses input from lower-level and middle-level managers to formulate budget plans.

Question

Quizplus · Accepted Answer

A zero-based budget is prepared each year from scratch, requiring each item of expenditure to be justified, rather than basing it on previous budgets.

Which of the Following Is a Key Characteristic of a Zero-Based