Question on: JAMB Economics - 2017
Which of the following is correct?
A
Traditional budgeting focuses on goals and objectives
B
Zero based budgeting produces a single level of appropriation for an activity
C
Traditional budgeting starts with last year’s funding appropriation
D
Zero based budgeting does not systematically consider alternatives to current operations
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Correct Option: C
Here's the breakdown:
-
Traditional budgeting starts with last year's funding appropriation: This is the core principle. Traditional budgeting uses the previous year's budget as a base and makes incremental adjustments.
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Why the other options are incorrect:
- A: Traditional budgeting is less focused on goals and objectives compared to zero-based budgeting.
- B: Zero-based budgeting requires justifying every expense and doesn't produce a single level of appropriation.
- D: Zero-based budgeting does systematically consider alternatives to current operations. This is a key feature of this budgeting method.
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