Economics · Budgeting Techniques
Given below are two statements: Assertion (A): Under Zero-Based Budgeting (ZBB), previous year's expenditure baseline is not automatically carried forward into new budget proposals. Reason (R): Under ZBB, every activity and item of expenditure must be re-justified and re-evaluated during each budget cycle. Choose the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(A) is true, but (R) is not the correct explanation of (A).
- 2(A) is false, but (R) is true.
- 3Both (A) and (R) are true, and (R) is the correct explanation of (A).✓
- 4Both (A) and (R) are false.
Correct answer
Both (A) and (R) are true, and (R) is the correct explanation of (A).
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