Which of the Following Is True About Zero-Based Budgeting

question 15

Multiple Choice

Which of the following is true about zero-based budgeting?

• A)It is a variant of program budgeting.
• B)It requires activities of the entity to be evaluated over a five-year period.
• C)It currently is used by most state and local governments.
• D)It is incremental in approach.

---

Definitions:

Payroll Tax Expense

Payroll tax expense includes taxes imposed on employers or employees, and is based on the wages, salaries, and tips paid to the employees.

State Unemployment Taxes

Taxes imposed by state governments on employers to fund unemployment insurance benefits for laid-off workers.

Hourly Wage Rate

The amount of money paid for each hour of work performed.

Federal Income Tax Withholding

Federal income tax withholding is the process by which an employer deducts a portion of an employee's income to pay directly to the federal government as a prepaid credit towards the employee’s annual tax liability.