Section A

MetroWater, a public utility company, is transitioning from incremental budgeting to Zero-Based Budgeting (ZBB) for its maintenance department.

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

It takes the previous year's budget and adjusts it for inflation.

It requires all expenses to be justified for each new period, starting from a base of zero.

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

It helps identify and eliminate inefficient or obsolete operations.