Zero Based Budgeting (ZBB) lays emphasis on: A. Allocation of resources based on cost-benefit terms B. Unlimited deficit financing C. Preparing a new budget right from the scratch D. Preparing the budget without automatically treating previous expenditure as the baseline Choose the correct answer from the options given below:
A, C and D only
Zero-based budgeting requires each activity and its costs to be justified afresh, with resources allocated according to assessed benefits and priorities. Earlier spending is not automatically carried forward as an entitlement, although historical information can still inform the analysis. It does not authorize unlimited deficit financing; A, C and D are correct.
Important Questions from Capital budgeting decisions
- Under which one of the following situation a firm can not raise capital for a project under any circumstance ?
- Which of the following statement about Finance lease is NOT true ?
(i) Finance lease transfer substantially all the risks and rewards incidental to ownership of an asset.
(ii) The lease period in a finance lease covers a substantial portion of the asset's economic life.
(iii) Payment towards lease rental in finance lease cover all cast incurred by lessor in obtaining the assets.
(iv) Finance lease is considered short-term in nature. - Assertion (A): Compounding interest allows an investment to grow faster over time compared to simple interest.
Reason (R): Simple interest earns interest on Previously earned interest. Which of the following variables is not known in Internal Rate of Return methods of capital budgeting?
- As per the Union Budget 2022, how many crore has been made to cover 3.8 crore households in 2022-23 under Har Ghar, Nal Se Jal Scheme?
