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Zero-base budgeting starts each year from:
AZero
BLast year's figures
CSales budget
DProduction budget
Answer & Solution
Correct answer: A. Zero
1. Under zero-base budgeting (ZBB), each activity is justified from scratch every cycle.
2. Past expenditure is not a starting reference; the base is zero.
3. Activities must demonstrate their value independent of history.
4. Hence ZBB starts each year from zero.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.8.3 ¶1_
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