Zero-Based Budgeting (ZBB) requires that every budget line item be:

AIncreased by a fixed percentage over last year

BRe-justified from scratch (zero base) for each new budget cycle

CAdjusted solely for national inflation

DMatched by foreign aid grants

Explanation

ZBB requires managers to justify all expenses from a baseline of zero, rather than modifying historical spending.

Submitted by: mcqstutor Team More Economics MCQs →