When a project or activity is budgeted in each new budget cycle as if it were brand new, a(n) __________ budgeting approach is being used.

A) flexible
B) operational
C) contingency
D) zero-based
E) fixed

Zero-based Budgeting

A budgeting approach where all expenses must be justified for each new period, starting from a "zero base," without reference to previous budgets.

Budget Cycle

The budget cycle describes the periodic process of planning, preparation, approval, and review of a budget, encompassing stages from proposal to implementation and subsequent analysis.

Flexible

The quality of being able to adapt to changes or new circumstances easily without significant disruption.