One characteristic of incremental budgeting is that it
A) allows comparison using various units, like labor hours and dollars.
B) is flexible toward changing environmental demands.
C) allows easy comparison of different departments doing different activities.
D) locks managers into stable spending arrangements.
E) requires more time from managers than zero-based budgeting.

Question

Quizplus · Accepted Answer

One difficulty of incremental budgeting is that incremental budgets tend to lock departments into stable spending arrangements; they are not flexible in meeting environmental demands.

One Characteristic of Incremental Budgeting Is That It