Which of the following budgetary approaches starts with line-item expenditures and applies a factor approximating the inflation rate to most items,unless specific information is available to suggest a different factor be applied?
A) Performance budgeting.
B) Zero-based budgeting.
C) Program budgeting.
D) Incremental budgeting.

Question

Quizplus · Accepted Answer

Incremental budgeting starts with the previous year's budget and makes adjustments based on a factor approximating inflation, unless there is specific information to suggest otherwise. This approach is also known as the "baseline budgeting" approach.

Which of the Following Budgetary Approaches Starts with Line-Item Expenditures