Correct Answer:
B. Justify every budgeted item from zero in each budget period
ZBB requires each activity to be justified afresh rather than relying on the previous year.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
In zero-based budgeting, managers must:
Related MCQs
A proportional (flat) tax:
A.
Charges higher rates on higher incomes
B.
Charges the same percentage rate at all income levels
C.
Charges lower rates on higher incomes
D.
Exempts all incomes
Correct answer is:
B. Charges the same percentage rate at all income levels
Do you agree with this answer?
Using the Gordon growth model, next year's dividend is Rs. 6, the required return is 12% and growth is 4%. The share price is:
A.
Rs. 50
B.
Rs. 75
C.
Rs. 37.5
D.
Rs. 150
Correct answer is:
B. Rs. 75
Do you agree with this answer?
Total expenditure is Rs. 1,000 billion, total revenue is Rs. 800 billion and interest payments are Rs. 120 billion. The primary deficit is:
A.
Rs. 200 billion
B.
Rs. 320 billion
C.
Rs. 120 billion
D.
Rs. 80 billion
Correct answer is:
D. Rs. 80 billion
Do you agree with this answer?
Target costing computes the target cost as:
A.
Actual cost plus markup
B.
Target selling price minus desired profit
C.
Last year's cost plus inflation
D.
Variable cost only
Correct answer is:
B. Target selling price minus desired profit
Do you agree with this answer?
Horizontal distribution under the NFC award refers to the sharing of resources:
A.
Between the Federation and the provinces
B.
Between public and private sectors
C.
Among the provinces
D.
Between rural and urban areas only
Correct answer is:
C. Among the provinces
Do you agree with this answer?
A manager who is responsible for both revenues and costs of a division is in charge of a:
A.
Cost center
B.
Profit center
C.
Revenue center only
D.
Investment center only
Correct answer is:
B. Profit center
Do you agree with this answer?
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