Which budgeting approach requires every activity and its costs to be justified from a base of zero, as if the activity were being undertaken for the first time?

Correct answer: D) Zero-based budgeting

Explanation

Zero-based budgeting starts from zero and requires each activity to be justified in terms of its costs and benefits. Incremental budgeting takes the previous period as its base and adjusts it for expected changes, which can carry forward past inefficiencies.