Which statement is accurate about zero-base budgeting?

• A. It relies on this year's figures without justification.
• B. It ignores actual amounts spent.
• C. It bases the budget on last year's increase.
• D. It prevents accepting this year's figures at face value.

Answer: (D)

Zero-base budgeting starts from zero for every line item and requires justification for each expense, rather than simply adjusting the previous year’s totals. Because of this, it prevents accepting this year's figures at face value—you rebuild the budget by evaluating and justifying every item anew. It doesn’t rely on this year's figures without justification, it doesn’t ignore actual amounts spent, and it doesn’t simply base the budget on last year’s increase; instead, each item is reassessed in light of current needs and priorities.