Each year Caliente, Inc., follows a budgeting process.The first step is always to look at the previous year's budget and see if anything needs to be updated.Caliente uses ____ budgeting.
A) Cash
B) traditional
C) capital
D) zero-base
E) historical

Question

Quizplus · Accepted Answer

The fact that Caliente, Inc. is looking at the previous year's budget and updating it suggests that they use traditional budgeting, which involves making incremental changes to the previous year's budget. Cash budgeting focuses on tracking cash inflows and outflows, capital budgeting involves long-term investment decisions, and zero-base budgeting involves starting from scratch each year. Historical budgeting is not a commonly used term.

Each Year Caliente, Inc