Question

What is the main objective of zero-based budgeting?

• A. To assess the effectiveness of each programme and activity with the output
• B. Establishing a relationship between inputs and outputs
• C. Examining the objectives for which funds are provided
• D. Re-evaluation of all the activities every year when budget provisions are made

Answer 1

Answer:

D. Re-evaluation of all the activities every year when budget provisions are made

• Zero-Based Budgeting (ZBB) is a method of budgeting where all expenses must be justified for each new period. • In ZBB, every line item from the previous budget is erased, and it starts from a 'zero base'.