Incremental budgeting has been criticised because it:
A) Encourages managers to continually reduce costs at the expense of quality
B) Does not encourage managers to seek ways to use the organisation's resources more efficiently
C) Encourages managers to used fixed costs instead of variable costs.
D) All of the above

Question

Quizplus · Accepted Answer

Incremental budgeting is criticized for not encouraging managers to seek ways to use the organization's resources more efficiently because it typically involves making small adjustments to the previous period's budget, rather than re-evaluating and optimizing resource allocation from scratch.

Incremental Budgeting Has Been Criticised Because It