Which budgeting approach requires justification for every expense and can be very time-consuming?

• A. Rolling Budget
• B. Line Item Budget
• C. Percentage Budget
• D. Zero Budget

Answer: (D)

Zero-based budgeting starts from a clean slate, requiring justification for every expense as if it were new. Nothing is carried forward by default, so each line item must be defended in terms of necessity and value, which drives thorough scrutiny and ensures alignment with current goals. This level of review is why the process can be very time-consuming—the budget team analyzes and approves every item rather than simply tweaking last year’s numbers. Rolling budgets continuously update projections without re-justifying every item, line-item budgets organize costs by category but don’t demand complete re-justification, and percentage budgets allocate funds by fixed shares rather than evaluating each expense from zero. This approach best fits the description.