LRA (JUNE 2015)

What are the main steps involved in preparing a zero?based budget? 1-Identifying previous inefficiencies, using adaptative management processes and avoiding wasteful expenditure in planning. 2-Recognising different cost behaviour patterns, planning on a rolling basis and ignoring wasteful expenditure. 3-Analysing the cost of each activity, identifying alternative methods and assessing the consequences of performing the activity at different levels. 4-Updating the budget continually, setting performance standards and controlling performance monthly with the use of variance analysis. sir why is the answer not 1? the correct answer is 3