Question

In Zero-base budgeting __________.

• A. previous year's figures are taken as base
• B. there is no given base figure for the budget
• C. previous three of four year figures are taken as base
• D. previous five years average figure is taken as base

Answer 1

Answer: (B)

there is no given base figure for the budget

Zero Based Budgeting is a method of budgeting in which all the expenses must be justified for each new period. Zero based budgeting starts from zero base and each function has to analyse the cost from zero. There is no given base figure for the budget.