CompTIA Project+ (PK0-005) — Question 226

Which of the following statements BEST describes zero-based budgeting?

Answer options

• A. Start with the budget from the last project and add any new expenses.
• B. Start with allocating expenses based on the importance of the project.
• C. Start the project with a fixed amount decided by the management team.
• D. Start with no financial plan and justify each new expense.

Correct answer: D

Explanation

The correct answer, D, accurately captures the essence of zero-based budgeting, which involves starting from scratch and justifying all expenses. Option A incorrectly suggests using previous budgets, while B implies a prioritization without justification, and C indicates a predetermined budget that contradicts the zero-based concept.