Which of the following describes a budget that requires justification for every expense made?

A budget that requires justification for every expense made is known as a Zero Based Budget. This budgeting approach starts from a "zero base," meaning that every function within the organization is analyzed for its needs and costs each budget period. Each manager must justify their budget requests in detail, ensuring that all expenses have a purpose and align with the organization's priorities, rather than simply adjusting previous budgets for inflation or other changes.

This methodology contrasts with other budgeting systems that may allow for incremental changes based on past budgets. For instance, a Line Item Budget typically focuses on itemized expenses without requiring justification for each cost, as it operates on historical figures. A Rolling Budget, on the other hand, continually updates and extends the budget over time, rather than requiring justification for every new expense. Lastly, a Performance Budget emphasizes the outcomes or outputs of activities rather than detailing all expenditures.