Which budgeting method requires that all funding requests be justified from scratch?

The budgeting method that requires all funding requests to be justified from scratch is the zero-based budget. This approach starts from a "zero base," meaning that every expense in the budget must be justified for each new period, rather than simply adjusting the previous year's budget figures.

In a zero-based budgeting process, managers must evaluate the needs and costs of their departments and prioritize their requests based on necessity and benefit, leading to a more efficient allocation of resources. This ensures that all expenditures are critically examined, rather than allowed to continue because they were previously funded.

The other methods, such as incremental budgeting and traditional budgets, often build upon prior budget figures, which can lead to inefficiencies or perpetuation of unnecessary costs without critically assessing the current needs. Activity-based budgeting, while also focused on costs and activities, does not start from a zero base but rather examines costs within the context of activities that drive expenses.