Which of the Following Is a Key Characteristic of a Zero-Based

question 87

Multiple Choice

Which of the following is a key characteristic of a zero-based budget?

• A) A zero-based budget provides estimates of costs that would be incurred under different levels of activity.
• B) A zero-based budget maintains focus on the budgeting process.
• C) A zero-based budget is prepared each year and requires each item of expenditure to be justified.
• D) A zero-based budget uses input from lower-level and middle-level managers to formulate budget plans.

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Definitions:

Services

Intangible products that are produced and consumed simultaneously, offering value without resulting in the ownership of physical goods.

Communist Systems

Political and economic systems in which property and resources are commonly owned, aiming to eliminate social classes and promote equality.