Of the following, which is not an advantage of incremental budgeting?
A) The budget is stable and change is gradual.
B) The approach encourages managers to spend up to the budget to ensure that the budget is maintained the following year.
C) Managers can operate their departments on a consistent basis.
D) Coordination between budgets is easier to achieve.
E) All of the above are advantages of incremental budgeting.

Question

Quizplus · Accepted Answer

Option B is not an advantage of incremental budgeting as it encourages managers to spend up to the budget rather than striving for greater efficiency and cost-saving measures.

Of the Following, Which Is Not an Advantage of Incremental