The major difference between zero-based and incremental budgeting is the ________.
A) use of a reference point in the budget process
B) degree of employee participation
C) use of top-down versus bottom-up processes
D) extent to which inflation is taken into account

Question

Quizplus · Accepted Answer

Zero-based budgeting starts from a "zero base," with every expense needing approval, without reference to previous spending levels, unlike incremental budgeting which adjusts previous budgets by a certain percentage (the reference point).

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