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 are using a traditional budgeting method. Traditional budgeting involves adjusting the previous year's budget based on changes in external and internal factors. None of the other options (cash, capital, zero-base, or historical) involve using the previous year's budget as a starting point.

Each Year Caliente, Inc