Incremental Budgeting: Incremental budgeting is a type of budgeting process based on the previous year’s budget. It uses the previous year’s budget as a starting point, and then adjusts it for inflation, changes in sales, cost of materials, etc.
Zero-Based Budgeting: Zero-based budgeting is a budgeting process that starts from zero each year. This means that all expenses must be justified and allocated to each department or project.
Activity-Based Budgeting: Activity-based budgeting is a budgeting process that allocates funds based on activities performed. It is based on the premise that activities are the main drivers of costs in an organization.
Rolling Budget: A rolling budget is a type of budget that is updated and revised on a regular basis. This type of budget is useful for companies that have to constantly adjust to changing conditions and for companies that are rapidly growing.