ACCA PM · Chapter 10 · Question 2 of 9
Under zero-based budgeting, what is a decision package?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A document describing an activity, its costs and benefits, and alternative levels of service, which is ranked against other packages
Explanation
In ZBB each activity is described in a decision package setting out its purpose, costs, benefits and alternative ways or levels of performing it. Packages are ranked and resources are allocated to the highest-ranked packages until the budget is exhausted.
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