Question

Which of the following is a key advantage of adopting Zero-Based Budgeting (ZB

  • B in an organisation?
A It promotes incremental budgeting based on historical expenditures. Correct Answer Incorrect Answer
B It simplifies the allocation of fixed overhead costs across departments Correct Answer Incorrect Answer
C It enables identification and elimination of nonessential or obsolete operations. Correct Answer Incorrect Answer
D It reduces the requirement for managerial approval and justification of expenses Correct Answer Incorrect Answer

Solution

The correct answer is C

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