Conrad,an accountant for a large marketing company,develops projections and proposals for the annual budget based on the budget of the previous year.This is an example of what type of budgeting?
A)Incremental budgeting
B)Operational budgeting
C)Zero-base budgeting
D)Activity-based budgeting

Question

Quizplus · Accepted Answer

Conrad is using the budget of the previous year as the starting point for his projections and proposals for the annual budget. This is a characteristic of incremental budgeting, where the budget for the current year is based on the budget of the previous year with adjustments for inflation, growth, and other changes.

Conrad,an Accountant for a Large Marketing Company,develops Projections and Proposals