In ________ budgeting, corporate executives create a list of all capital allocation requests from divisions in a firm, rank them from "most important" to "least important" and then fund all the projects a firm can afford, given the amount of capital that is available and no project receives funding simply because it was funded in the past.
A) cost-plus
B) activity-based
C) zero-based
D) revenue-based

Question

Quizplus · Accepted Answer

The description fits the process of zero-based budgeting, where all requests for funding are evaluated based on their necessity and potential return, rather than just being funded because they were previously funded. Cost-plus and revenue-based budgeting methods do not involve ranking allocation requests, while activity-based budgeting is focused on allocating costs to specific activities within a company.

In ________ Budgeting, Corporate Executives Create a List of All