Question

The programs at the top of the priority list are funded, if money runs out, programs at the bottom are not funded. This budget allows for reallocation, whether it be increasing levels of service or funding a new program. It creates a high level of competition because allocations are made new each year, starting from scratch, so it is seldom used. A) Line-Item Budgeting B) Performance-based Budgeting C) Program Budgeting D) Zero-Based Budgeting E) Target Budgeting

Answer 1

The budgeting method described in the question is Zero-Based Budgeting (D). Zero-Based Budgeting is a budgeting technique where all expenses must be justified for each new period, rather than simply carrying forward the previous budget.

Step-by-step explanation:

The budgeting method described in the question is Zero-Based Budgeting (D). Zero-Based Budgeting is a budgeting technique where all expenses must be justified for each new period, rather than simply carrying forward the previous budget. It starts from zero and requires every program or activity to be justified in order to receive funding, creating a high level of competition among programs. This method allows for reallocation and the possibility of funding new programs or increasing levels of service.