Which budgeting method involves preparing budgets based on the previous year's p

₹0.0

Question: Which budgeting method involves preparing budgets based on the previous year\'s performance?

Options:

Correct Answer: Incremental budgeting

Solution:

Incremental budgeting uses the previous year\'s budget as a base and adjusts for changes.

Which budgeting method involves preparing budgets based on the previous year's performance?

Which budgeting method involves preparing budgets based on the previous year's performance?

Step 1: Understand what budgeting means. Budgeting is planning how to spend money.
Step 2: Learn about different budgeting methods. There are various ways to create a budget.
Step 3: Identify the method that uses last year's budget. This method looks at how much was spent last year.
Step 4: Know the name of this method. It is called 'incremental budgeting.'
Step 5: Understand how it works. Incremental budgeting takes last year's budget and makes small changes for the new budget.

No concepts available.