The major difference between zero-based and incremental budgeting is the _____.
A)degree of employee participation
B)resulting budget amount obtained
C)absence or presence of opportunity costs in the budgetary process
D)starting point in the budget process

Question

Quizplus · Accepted Answer

The major difference between zero-based and incremental budgeting is the starting point in the budget process. In incremental budgeting, the budget is based on the previous year's budget, with adjustments made for inflation or changing circumstances. In contrast, zero-based budgeting starts from scratch, with each budget item justified and evaluated based on its need and cost-effectiveness. The degree of employee participation, resulting budget amount obtained, and the presence or absence of opportunity costs may vary between the two budgeting methods, but they are not the major differences between them.

The Major Difference Between Zero-Based and Incremental Budgeting Is the _____