Which of the Following Statements Is True About Zero-Based Budgeting

question 15

Multiple Choice

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

• A) The process starts with last year's budget and changes anticipated are added or subtracted to get the current budget.
• B) Managers are required to justify all budgeted expenditures.
• C) Budgets have no financial components - are specified in product units only.
• D) Managers are required to use the prior year's budget without changes for the current year.

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Definitions:

Aldosterone

A steroid hormone produced by the vertebrate adrenal cortex; stimulates sodium reabsorption. See mineralocorticoids.

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, commonly used as a fertilizer and in various industrial processes.

Urea

A nitrogenous compound produced in the liver as a waste product of protein metabolism.

Uric Acid

A waste product formed from the breakdown of purines, which are found in many foods, and is excreted in urine.