A budgeting method that derives the subsequent year's budget from the current year's budget is called:
A) Planning-programming-budgeting.
B) Incremental budgeting.
C) Zero-based budgeting.
D) Performance budgeting.

Question

Quizplus · Accepted Answer

Incremental budgeting involves making adjustments to the previous year's budget to arrive at a new budget. This method assumes that the previous year's budget was adequate and only incremental changes are necessary. It is a common budgeting method used by many organizations. The other budgeting methods listed require a more comprehensive approach to budgeting.

A Budgeting Method That Derives the Subsequent Year's Budget from the Current