When using zero-based budgeting, each part of the organization in which budget decisions are made is referred to as a __________.
A) Budget unit
B) Finance unit
C) Forecast unit
D) Decision unit
E) None of the above

Question

Quizplus · Accepted Answer

In zero-based budgeting, each part of the organization where budget decisions are made is referred to as a "Decision unit." This approach requires every unit to justify all of its expenditures from scratch for each new period, rather than basing budgets on the previous year's expenditures.

When Using Zero-Based Budgeting, Each Part of the Organization in Which