________ requires that each discretionary expenditure be justified.
A)Zero-based budgeting
B)Periodic budgeting
C)Incremental budgeting
D)Continuous budgeting

Question

Quizplus · Accepted Answer

Zero-based budgeting is a budgeting method that requires each discretionary expenditure to be justified from the ground up, unlike incremental budgeting where prior year’s budget serves as the starting point. With zero-based budgeting, each item of expenditure is analyzed, evaluated, and justified to determine whether or not it should be included in the budget. Therefore, A) is the correct answer.

________ Requires That Each Discretionary Expenditure Be Justified