Answer (A) is correct. Zero-based budgeting (ZBB) is a planning process in which each manager must justify a department’s entire budget every year (or period). Under ZBB, a manager must build the budget every year from a base of zero. All expenditures must be justified regardless of the variances from previous years’ budgets. The objective is to encourage periodic reexamination of all costs in the hope that some can be reduced or eliminated.