Zero-Based Budgeting (ZBB) requires managers to: MCQ with Answer and Explanation

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Zero-Based Budgeting (ZBB) requires managers to:

A. Keep all expenses at zero

B. Base the new budget on last year's actuals

C. Justify every expense from scratch for every new period

D. Increase the budget by a flat zero percent

Answer: Option C

Solution (By JKSSB Mock Tests)

ZBB starts from a 'zero base', requiring a fresh justification for all funding rather than relying on historical data.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Under the straight-line method of depreciation, the depreciation amount:

A. Is based on usage

B. Remains constant every year

C. Increases every year

D. Decreases every year

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Correct Answer: Option B

Explanation:
Straight-line method charges equal amount of depreciation each year over the useful life of the asset.

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Question #2

Social Accounting primarily measures:

A. Only financial performance

B. Impact of an entity on society and environment

C. Tax paid to government

D. Dividends to shareholders

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Correct Answer: Option B

Explanation:
It quantifies social costs and benefits generated by an enterprise.

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Question #3

The 'Deferred Revenue Expenditure' is an expenditure that:

A. Is entirely charged to current year

B. Provides benefit over several accounting periods

C. Is capital expenditure

D. Is never written off

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Correct Answer: Option B

Explanation:
Deferred revenue expenditure (e.g., heavy advertisement) is written off over a number of years.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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