ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stopping all spending on incidentals such as dining out or entertainment.
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The practice of budgeting every dollar of income received.
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A budgeting method where you put ‘zero’ dollars on your credit card.
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The ability to pay all of your bills each month with something left for ‘whatever’.
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Detailed explanation-1: -Zero-based budgeting (ZBB) is a budgeting technique in which all expenses must be justified for a new period or year starting from zero, versus starting with the previous budget and adjusting it as needed.
Detailed explanation-2: -Zero-based budgeting (ZBB) is a methodology to help align company spending with strategic goals. Its approach requires organizations to build their annual budget from zero each year to verify all components of the annual budget are cost-effective, relevant, and drive improved savings.
Detailed explanation-3: -Definition: Zero Based Budgeting, also called ZBB, is the process of creating a budget from nothing without using the prior year’s budget or spending numbers. No activities are assumed to be untouchable. All expenses are judged and must be justified in order to remain in the budget.
Detailed explanation-4: -Zero Based Budgeting is a method of budgeting in which all the expenses must be justified for each new period. Zero based budgeting starts from zero base and each function has to analyse the cost from zero.