Detailed Answer
Answer (C) is correct. Zero-based budgeting is a planning process in which each manager must justify a department’s entire budget every year (or period). Different levels of service (work effort) are evaluated for each activity, measures of work and performance are established, and activities are ranked (prioritized) according to their importance to the entity. For each budgetary unit, decision packages are prepared that describe various levels of service that may be provided, including at least one level lower than the current one.