Question
In Zero-Based Budgeting (ZBB), the budget for each
activity is:Solution
ZBB requires that every expense be justified anew, without assuming continuity of past budgets. It ensures optimum resource allocation. Mr. A has the following incomes during the year: • Income from Salary: ₹4,00,000 • Income from House Property (net after deductions): ₹1,00,000 • Profit from Business: ₹2,00,000 • Income from Capital Gains: ₹50,000 • Income from Other Sources: ₹25,000
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