Consider the following statements in regard to Zero Base

Solution

Zero-based budgeting is a budgeting method that requires all expenses to be justified and approved in each new budget period, typically each year. It was developed by Peter Pyhrr in the 1970s. Zero-based budgeting is an approach to planning and decision- making which reverses the working process of traditional budgeting. In zero-based budgeting, every line item of the budget must be approved, rather than only changes. Moreover ZBB is difficult to be applied to Human Development programmes as the outcome of such programmes is intangible in nature.