ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period.

Detailed explanation-2: -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-3: -What is zero-based budgeting? Zero-based budgeting is a method that has you allocate all of your money to expenses for needs and wants, as well as short-and long-term savings and debt payments. The goal is that your income minus your expenditures equals zero by the end of the month.

Detailed explanation-4: -What is zero-based budgeting? Zero-based budgeting (ZBB) is a budgeting approach that involves developing a new budget from scratch every time (i.e., starting from “zero”), versus starting with the previous period’s budget and adjusting it as needed.

Detailed explanation-5: -In zero-based budgeting every function is analyzed for its needs and costs. Hence statement 2 is correct. In a zero-based Budget, no balances are carried forward, or there are no pre-committed expenses.