Correct Answer:
B. Every expenditure be justified from zero in each budget cycle
ZBB reviews all programs afresh.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Zero-based budgeting (ZBB) requires that:
Related MCQs
Sales tax in the form of a value added tax (VAT) is levied on:
A.
Final retail price only, once
B.
Profits of companies
C.
Value added at each stage of production and distribution
D.
Wealth of individuals
Correct answer is:
C. Value added at each stage of production and distribution
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Tracing from source documents (e.g. goods received notes) to the accounting records mainly tests:
A.
Occurrence
B.
Rights and obligations
C.
Presentation
D.
Completeness
Correct answer is:
D. Completeness
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Under absorption costing, fixed manufacturing overhead is treated as:
A.
A period cost charged fully to the current period
B.
A selling expense
C.
A product cost included in inventory valuation
D.
An abnormal loss
Correct answer is:
C. A product cost included in inventory valuation
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Standard costing is a technique in which:
A.
Only actual costs are recorded
B.
Costs are ignored
C.
Selling prices are fixed by law
D.
Predetermined costs are compared with actual costs to compute variances
Correct answer is:
D. Predetermined costs are compared with actual costs to compute variances
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Incremental budgeting means:
A.
Preparing every budget from zero
B.
Adjusting the previous year's budget by a certain percentage or amount
C.
Using only actual expenditure
D.
Ignoring last year's figures
Correct answer is:
B. Adjusting the previous year's budget by a certain percentage or amount
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A share buyback (repurchase) generally:
A.
Increases the number of shares outstanding
B.
Reduces the number of shares outstanding
C.
Raises new equity
D.
Has no effect on cash
Correct answer is:
B. Reduces the number of shares outstanding
Do you agree with this answer?
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