Question

A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is called a(n)_____. A) standardized budget B) fixed budget C) zero-based budget D) incremental budget E) tactical budget

Answer 1

Answer:

D) incremental budget

Explanation:

An incremental budget is a budget in which the budget is prepared based on the last year budget or the actual performance so that the amounts that are increased or decreased could be added for the current year budget

Here in the given situation, the allocation of the budget is either increased or decreased by using the previous year budget is known as incremental budget

hence, the correct option is D. Incremental budget