B. This answer is incorrect. See the correct answer for a complete explanation.

C. Zero-based budgeting is the budgeting method in which the current year budget is prepared without any reference to, or use of, the prior period's budget. Within zero-based budgeting all of the activities that a department undertakes are identified and then prioritized. This is the manner in which costs are justified and supported. Also, because the manager needs to examine every single expenditure and activity within the department, he is more likely to develop an alternative and, hopefully cheaper, method of accomplishing the same thing.

D. This answer is incorrect. See the correct answer for a complete explanation.