Describe the Incremental Approach to Budgeting

question 69

Essay

Describe the incremental approach to budgeting. In what settings is the incremental approach typically used? What is the primary advantage of this approach? What is the primary disadvantage of this approach?

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Definitions:

Global Supplier

A supplier that provides goods or services to companies in multiple countries, often involved in international trade.

Domestic Suppliers

Companies that provide goods or services within the same country as the company purchasing from them.

Special Economic Zones

Geographically designated areas within a country where business and trade laws differ from the rest of the country and are more favorable to attract investments and economic activities.

Rapid Economic Growth

A period where a country's economy expands at a faster rate than its historical average, often leading to increased wealth and employment opportunities.