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Budgeting with Incremental or Zero-based Budgets

1)What is the difference between two types of line-item budgeting approaches: incremental budgeting and zero-based budgeting? Which of the two approaches is more widely used by governments? Which do you think is more beneficial in developing realistic budgets?

2)"The sole objective of budgeting in a governmental entity is to demonstrate compliance with appropriation legislation." Do you agree or disagree? Explain.

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Below is the study guide I created to help you finalized you answers for the questions.

Question 1:
I decided to analyze each question separately, then tying them together rather than look at them as a single question.

What is the difference between two types of line-item budgeting approaches: incremental budgeting and zero-based budgeting?

==> I suggest that you define incremental budgeting and zero-based budgeting to present an effective compare and contrast of these two types of budgeting approaches. It is best if you can use your own words based on the official definition in your textbook. For example, incremental budgeting assumes that last period's budget is ...

Solution Summary

The expert examines budgeting with incremental or zero-based budgets. The sole objectives of budgeting in a governmental entity is to demonstrate compliance with appropriate legislation is determined.

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