Which describes a zero-based budget?

• A. Budget where the budget is set by the district board with no justification
• B. Budget where coach and AD negotiate based on need, and budget requires justification
• C. Budget based on last year's expenditures with adjustments
• D. Budget that is tied strictly to fundraising totals

Answer: (B)

Zero-based budgeting starts from a clean slate, requiring every expense for the coming period to be justified rather than simply adjusting the previous year's numbers. In practice, the coach and athletic director discuss needs, prioritize programs, and build the budget from scratch with explicit justification for each item. This approach ensures resources match current priorities and avoid carrying forward unnecessary costs. That’s why describing a process where budgeting is negotiated based on need and requires justification fits zero-based budgeting best. Budgets built on last year’s expenditures with minor adjustments are incremental, and tying the budget to fundraising totals doesn’t capture starting from zero and rebuilding from scratch.