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zero-based budgeting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › zero-based budgeting

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • August 29, 2020 at 11:07 am #582631
    AverageAndy
    Member
    • Topics: 128
    • Replies: 34
    • ☆☆

    A definition of zero?based budgeting is set out below, with two blank sections.
    “Zero?based budgeting: a method of budgeting which requires each cost element
    ___________, as though the activities to which the budget relates _______________.”
    Which combination of two phrases correctly completes the definition?

    Blank 1 Blank 2
    A to be specifically justified could be out?sourced to an external supplier
    B to be set at zero could be out?sourced to an external supplier
    C to be specifically justified were being undertaken for the first time
    D to be set at zero were being undertaken for the first time

    sir the answer is C. But i am wondering why D is wrong?

    August 29, 2020 at 2:15 pm #582644
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    Because we don’t set anything at zero.

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