What is a common consequence of zero-base budgeting?

• A. It eliminates the need for review.
• B. It ignores past expenditures.
• C. It may require more time and analysis to justify each item.
• D. It guarantees cost savings.

Answer: (C)

Zero-base budgeting starts from zero for every program and expense, requiring justification for each item as if it were new. Because nothing is carried over by default, this process demands thorough analysis of the necessity, cost, and impact of every activity, which typically takes more time and effort to document and defend. It isn’t about ignoring past expenditures; those costs are reviewed anew to decide whether they still justify funding. It also doesn’t guarantee cost savings—while it can reveal waste or duplication, actual savings depend on the outcomes of the evaluation. And it doesn’t eliminate review; it expands it into a more detailed, item-by-item judgment.