Answer:
a) Answer a) is incorrect. Organizations in high-growth industries where decisions need
to be made quickly are not likely to adopt zero-based budgeting, because the detailed
process underlying this approach to budgeting is very time consuming. Answer b) is
correct. Organizations that have access to a limited amount of resources and need to
justify their expenditures in detail are most likely to adopt a zero-based budgeting
approach.
*b) Answer b) is correct. Organizations that have access to a limited amount of
resources and need to justify their expenditures in detail are most likely to adopt a zerobased budgeting approach.
c) Answer c) is incorrect. The zero-based budgeting approach constitutes a very
detailed approach to budgeting. It bears no relation to organizations that implement
zero-defect policies. Answer b) is correct. Organizations that have access to a limited
amount of resources and need to justify their expenditures in detail are most likely to
adopt a zero-based budgeting approach.
d) Answer d) is incorrect. The zero-based budgeting approach constitutes a very
detailed approach to budgeting and control. Therefore, it cannot be said that
organizations that have adopted zero-based budgeting focus only on the big picture.
Answer b) is correct. Organizations that have access to a limited amount of resources
and need to justify their expenditures in detail are most likely to adopt a zero-based
budgeting approach