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    This post explains incremental, zero, and activity budgeting

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    1. Explain differences between incremental budgeting and Zero Based Budgeting.
    2. Explain Activity Based Budgeting.

    © BrainMass Inc. brainmass.com March 4, 2021, 11:57 pm ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/explains-incremental-zero-activity-budgeting-469909

    Solution Preview

    1. In zero-based budgeting, management starts with a base of zero every time a new zero-based budget is prepared. Historical trends and other considerations are not used for the zero-based budget. In order for an activity to be added onto the budget, a full cost-benefit analysis is prepared, and if the benefits outweigh the costs, the activity is considered justifiable and is added to the ...

    Solution Summary

    The solution provides a detailed description of incremental budgeting and zero based budgeting by examining the differences between the two budgeting systems. Activity based budgeting is also explained.

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