What does zero-based budgeting question regarding services?

Zero-based budgeting (ZBB) fundamentally reevaluates the necessity of services and programs during the budgeting process rather than merely adjusting previous budgets. It starts from a “zero base,” meaning that all expenses must be justified for each new period, rather than automatically inflating prior budgets.

In this context, the correct answer focuses on the critical examination of whether the services provided are essential and needed. This approach forces decision-makers to analyze the relevance and effectiveness of each service offered, ultimately ensuring that funding aligns with current priorities and available resources. By questioning the necessity of each service, ZBB promotes efficient allocation of resources and can lead to better alignment with organizational goals.

The other options pertain to different aspects of financial management. Balancing the budget is a crucial goal but does not specifically address the evaluative practice inherent to ZBB. Reducing overhead costs can be an outcome of implementing ZBB but is not its main focus. Lastly, accounting for all revenues is essential for financial transparency and planning but does not directly relate to the central tenet of whether services are necessary and justified.