Zero-Base Budgeting Is Useful for Comparing Programs for the Purpose

question 14

True/False

Zero-base budgeting is useful for comparing programs for the purpose of increasing or decreasing spending.

---

Definitions:

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, applied to allocate manufacturing overhead costs to products.

Support Department

Units within an organization that provide essential services or support to the production departments but do not directly engage in primary operations.

Service Departments

Units within a business not directly involved in primary operations but support other departments, e.g., HR and IT.

Support Departments

Units within an organization that provide essential services or support to the primary production or operational departments.