Question

The most important step involved in the Zero Based Budgeting process is:

• A. Preparation of budgets
• B. Developments of decision packages
• C. Development of decision units
• D. Review and ranking of decision packages

Answer 1

The correct option is D Review and ranking of decision packages

The ranking of decision packages is the most important process of Zero Based Budgeting.It forces the prioritization of all programs and activities. There are many ways to rank decision packages depending upon the managers.