Answer (C) is correct . Zero-based budgeting (ZBB) is a budget and planning process in which each manager must justify his/her department’s entire budget every budget cycle. ZBB differs from the traditional concept of incremental budgeting, in which the current year’s budget is simply adjusted to allow for changes planned for the coming year.
Answer (A) is incorrect because Performance budgeting refers to the way a budget is used, and not how it is developed.
Answer (B) is incorrect because A program budget is a budget that lists budget items by program rather than by type of expense; it could be either zero-based or incremental.
Answer (D) is incorrect because Incremental budgeting is the traditional budgeting method in which the current year’s budget is simply adjusted to allow for changes planned for the coming year.
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