Zero-based budgeting organizes budget presentations according to what?

Zero-based budgeting organizes budget presentations according to what?

• A. Decision packets of cost centers
• B. Time periods
• C. Public goals
• D. Workloads

Answer: (A)

Zero-based budgeting starts from a clean slate each period and organizes spending requests into decision packages for each cost center. Each package describes the proposed level of funding, the actions it funds, the costs, benefits, and alternatives. This structure lets managers justify every activity from the ground up and compare priorities across the organization, funding the most valuable packages first. Time periods, public goals, and workloads reflect different budgeting approaches and aren’t how ZBB structures budget presentations.

Zero-based budgeting starts from a clean slate each period and organizes spending requests into decision packages for each cost center. Each package describes the proposed level of funding, the actions it funds, the costs, benefits, and alternatives. This structure lets managers justify every activity from the ground up and compare priorities across the organization, funding the most valuable packages first. Time periods, public goals, and workloads reflect different budgeting approaches and aren’t how ZBB structures budget presentations.