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Consider the following statements about the Zero Based Budgeting (ZBB) method:
It starts with the budget from the last financial year.
  • Every activity needs to be justified.
    Which of the statements given above is/are correct?
    • a)
      1 only
    • b)
      2 only
    • c)
      Both 1 and 2
    • d)
      Neither 1 nor 2
    Correct answer is option 'B'. Can you explain this answer?
    Most Upvoted Answer
    Consider the following statements about the Zero Based Budgeting (ZBB...

    Explanation:

    Zero Based Budgeting (ZBB) Method:

    - Statement 1: It starts with the budget from the last financial year.
    - Statement 2: Every activity needs to be justified.

    Explanation:

    - Statement 1: This statement is incorrect. Zero Based Budgeting (ZBB) method does not start with the budget from the last financial year. Instead, it requires all expenses to be justified from zero, meaning that each budget item must be justified regardless of whether it was included in the previous year's budget or not.

    - Statement 2: This statement is correct. In Zero Based Budgeting (ZBB), every activity, expense, or initiative needs to be justified from scratch. This means that all expenses must be evaluated and approved based on their necessity and relevance to the organization's goals and objectives.

    Therefore, the correct answer is option 'B' - 2 only.
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    Community Answer
    Consider the following statements about the Zero Based Budgeting (ZBB...
    Zero-based budgeting (ZBB) is a method of budgeting in which all activities and expenses are evaluated and justified from scratch, rather than building on the previous year's budget. This means that all activities and expenses must be re-evaluated and justified, regardless of whether they were funded in the previous year's budget or not.
    ZBB starts with a "zero base" and requires that every activity and expense be justified in terms of its contribution to the organisation's goals and objectives. This means that every activity needs to be justified, regardless of whether it has been funded in the past or not. Therefore, statement 2 is correct, while statement 1 is incorrect.
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    Consider the following statements about the Zero Based Budgeting (ZBB) method: It starts with the budget from the last financial year. Every activity needs to be justified. Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
    Question Description
    Consider the following statements about the Zero Based Budgeting (ZBB) method: It starts with the budget from the last financial year. Every activity needs to be justified. Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about the Zero Based Budgeting (ZBB) method: It starts with the budget from the last financial year. Every activity needs to be justified. Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about the Zero Based Budgeting (ZBB) method: It starts with the budget from the last financial year. Every activity needs to be justified. Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?.
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