The primary disadvantage of zero-based budgeting is:
A) Its tendency to motivate managers to create budgetary slack
B) It encourages managers to spend all their budgeted money each year to avoid future cutbacks
C) It ignores the input of managers
D) The time it takes to develop a zero-based budget

Question

Quizplus · Accepted Answer

Zero-based budgeting requires starting from a "zero base" every budget period, analyzing and justifying every expense, rather than simply adjusting previous budgets. This process is thorough and can lead to more accurate, purpose-driven budgeting, but it is also time-consuming, making the time it takes to develop a zero-based budget its primary disadvantage.

The Primary Disadvantage of Zero-Based Budgeting Is