Final answer:
The statement is true; zero-base budgeting requires each expense to be justified for each new budget period, starting from a zero base.
Step-by-step explanation:
The statement that zero-base budgeting is a budgeting approach in which every expense must be justified in every budget is True. Zero-base budgeting is a method where all expenses must be approved, rather than only changes from the previous budget. This budgeting technique starts from a 'zero base,' with every function within an organization being analyzed for its needs and costs. Instead of carrying over existing budgets, every line item of the budget must be justified and approved.
Zero-base budgeting can increase efficiency and allocation of resources by ensuring that all expenditures are necessary and aligned with the organization's goals. It can also identify areas of wasteful expenditure and reallocate funds to more productive areas, which might be necessary when, for instance, increased spending on specific sectors is expected to foster economic growth and justify a budget deficit.