flexible budget
total budget
master budget
zero base budget
Answer is Right!
Answer is Wrong!
The correct answer is D. zero base budget.
A zero-base budget (ZBB) is a budgeting process that requires all levels of an organization to justify all of their budgeted expenses each year, regardless of whether the programs or activities existed in the previous year. This is in contrast to incremental budgeting, which only requires managers to justify changes to their previous year’s budget.
ZBB is a more rigorous budgeting process than incremental budgeting, and it can lead to more efficient use of resources. However, it is also a more time-consuming and complex process, and it can be difficult to implement in large organizations.
Here is a brief explanation of each option:
- A flexible budget is a budget that is adjusted to reflect changes in the level of activity. This type of budget is useful for organizations that have variable costs, as it allows them to budget for different levels of production.
- A total budget is a budget that includes all of the expenses for an organization. This type of budget is typically used by large organizations, as it provides a comprehensive view of the organization’s financial situation.
- A master budget is a comprehensive budget that includes all of the financial plans for an organization. This type of budget is typically used by large organizations, as it provides a roadmap for the organization’s financial future.