Answer (D) is correct . The traditional approach to budgeting is to merely adjust last year’s figures by a given percentage or increment. Zero-based budgeting divides programs into packages of goals, activities, and required resources. The cost of each package is then calculated afresh, without regard to previous performance.
Answer (A) is incorrect because Zero-based budgeting is not primarily a measurement tool for program effectiveness.
Answer (B) is incorrect because The relationship of performance to resource inputs by integrated planning and resource allocation is part of the PPBS, or planning-programming- budgeting system.
Answer (C) is incorrect because Zero-based budgeting generally increases the time required to review a budget rather than reduces it; i.e., it consists of a determination of resources needed rather than an extrapolation of resources used in prior periods.
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