ACCA · Question 11 · Budgeting and Control
Section A
A public sector municipality is considering switching from incremental budgeting to Zero-Based Budgeting (ZBB) for its community services departments.
Which TWO of the following are recognized advantages of implementing Zero-Based Budgeting?
Answer options:
It is a quick and inexpensive process to implement annually.
It forces managers to identify and justify cost-effective ways to deliver services.
It eliminates historical inefficiencies that are carried forward in incremental budgets.
It guarantees that all departments will receive the same funding as the previous year.
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