Multiple choice

In Zero Base Budgeting (ZBB)

  1. the purpose and objectives for which funds are required are presented

  2. all the financial requirements of a budget are analysed, evaluated and justified annually

  3. it is a non-innovative technique that does not guard against the wastage of public expenditure

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Zero Base Budgeting (ZBB) requires every expense to be justified from scratch each budget cycle, rather than just incrementing previous budgets. All financial requirements must be analyzed, evaluated, and justified annually. This makes it an innovative technique that guards against wasteful spending.

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