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Good morning!
I’d like to ask about zero based budgeting question from Speciment exam.Two statements
1) Employees will focus on eliminating wasteful expenditure
2) Short-term benefits could be emphasised over long-term benefitsThe asnwer is that both statements are true.
The first one is ok, but why the second one is true? Why short-term benefits could be emphasised if zero-based budgets are mostly used for large long-term projects?It should not be true for the reason you state, however it ‘could’ be true because it is used as part of the short-term budgeting exercise and long-term effects may not be given as much attention as they should.
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