Section A

GovDept, a public sector organization, is transitioning from traditional incremental budgeting to Zero-Based Budgeting (ZBB) to cut unnecessary costs.

Which TWO of the following are characteristics of Zero-Based Budgeting?

Budgets are prepared by taking the previous year's actuals and adding a percentage for inflation.

Every proposed activity must be justified in its entirety, starting from a base of zero.

Activities are grouped into 'decision packages' which are then ranked by importance.

It is generally faster and less resource-intensive to implement than incremental budgeting.