Zero-Based Budgeting Refers to

question 16

Multiple Choice

Zero-based budgeting refers to

• A) a budgeting system that has very uncertain assumptions.
• B) a new budgeting system for a company that has not had a budget before.
• C) a budgeting system where all activity costs are based on estimates only.
• D) a budgeting system where all activities are initially set to zero and will not be continued unless they are clearly justified.

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Definitions:

Cryptomnesia

A phenomenon where a person mistakenly believes a memory or idea is new or original when it is actually derived from a forgotten source.

Source Amnesia

A type of amnesia in which someone can remember certain information but is unable to recall where, when, or how they learned that information.

Estimate

A rough calculation or judgment of the value, number, quantity, or extent of something.

Testifying

The act of giving evidence or bearing witness in a court of law or other legal proceeding.