Zero-base budgeting requires justification for expenditures even if recurring.

• A. True; recurring items require justification.
• B. False; recurring items never require justification.
• C. False; recurring items are assumed required without justification.
• D. False; recurring items are funded automatically without review.

Answer: (A)

Zero-base budgeting requires starting from zero and justifying every expense each period, rather than carrying forward last year's budgets. In this framework, even recurring expenditures must be justified anew to ensure they still serve the association's current priorities and provide value. So the statement is true because recurring items are not assumed or automatically funded; they must be reviewed and justified like any other cost. In a community association, this could apply to ongoing maintenance contracts or utilities: you evaluate whether the service is still needed, whether the price is fair, and whether there are more cost-effective options or alternatives.

Since everything starts from zero and must be justified, claims that recurring items never require justification or are assumed required without justification, or funded automatically without review, don’t fit zero-base budgeting.