Which of the following statements relating to Zero Based Budgeting (ZBB) is false:

CA Intermediate · Cost and Management Accounting · MTP · May 2024
Which of the following statements relating to Zero Based Budgeting (ZBB) is false:
(A) A. It is a method of budgeting whereby all activities are re-evaluated each time a budget is formulated.
(B) B. ZBB attempts to eliminate unnecessary expenditure being retained in budgets.
(C) C. It is probably the least time consuming and least costly approach to budgeting.
(D) D. It requires that budgets are built up from scratch.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. It is probably the least time consuming and least costly approach to budgeting.

Topics: Budgets and Budgetary Control

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