Under zero-based budgeting, each budgeting period a manager must:

Under zero-based budgeting, each budgeting

Multiple choice — select the best answer

AJustify all expenditures from a zero base rather than from the prior year's level
BIncrease the prior-year budget by an inflation factor
CAllocate costs only to the most profitable products
DBudget only for discretionary costs

✓ Correct answer: A. Justify all expenditures from a zero base rather than from the prior year's level Zero-based budgeting requires every activity and cost to be justified anew each cycle as if starting from zero, rather than carrying forward last year's amounts.

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Topic: Planning & Budgeting

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Under zero-based budgeting, each budgeting period a manager must:

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