How Is Incremental Budgeting Different from Zero-Based Budgeting

question 54

Multiple Choice

How is incremental budgeting different from zero-based budgeting?

• A)Incremental budgeting is a more time-consuming process than zero-based budgeting.
• B)Incremental budgeting promotes greater stability of government programs than zero-based budgeting.
• C)Incremental budgeting involves evaluating an agency's entire budget,whereas zero-based budgeting focuses on requested increases in funding.
• D)Incremental budgeting is initiated by Congress,whereas zero-based budgeting is initiated by the president.

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Definitions:

Total Cost Transferred

The total amount of costs moved from one stage of production to the next, or from one department to another.

Processing Department

A division within a factory where a specific stage of production is completed, contributing to the transformation of raw materials into finished products.

Cost System

A method employed by a business to track, record, and analyze costs, aiding in financial planning and cost control.

Total Cost Transferred

The aggregate cost of goods or services that is moved from one process or department to another within a company.