Which among the following is a type of budgeting technique where the previous year’s figures are not used as a base for preparing next year’s budgets.

In Zero Based Budgeting, the previous year’s figures are not used as a base for preparing next year’s budgets. Budget figures are developed with zero as the base, which means that the budget will be prepared as if it is being prepared for a new company for the first time.  It involves a planning and budgeting process which requires each manager to justify his entire budget request in detail from scratch (hence zero base). It is in contrast to Incremental Budgeting, where the next year’s budget is prepared keeping the previous year’s budget as the base.