Incremental budgeting , Managerial Accounting

Incremental budgeting

This is used to describe an incremental cost approach to budgeting where the next period budget is based on the current year’s results plus an extra amount (an increment) for estimated growth or inflation next period.

Incremental budgeting is sufficient only if current operations are effective, efficient and economical without an alternative course of action available to the organization. Although incremental budgeting is easy to prepare, it encourages slacks and wasteful spending to creep into budgets and become a normal feature of actual spending. It does not encourage performance to be improved or looking for alternative ways of carrying out the production.

Posted Date: 12/7/2012 8:11:55 AM | Location : United States

Related Discussions:- Incremental budgeting , Assignment Help, Ask Question on Incremental budgeting , Get Answer, Expert's Help, Incremental budgeting Discussions

Write discussion on Incremental budgeting
Your posts are moderated
Related Questions
Determine important factors while praparing sales budget The possible factors to be taken into account while preparing a sales budget are discussed as follows: 1) Past sales

Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t

Service time-probability distribution curve A common example is that service times follow an exponential probability distribution i.e. y=e -x Service channels - t

Hi there, i am looking an expert to make my assignments for this subject and i do have other subjects as well. Let me know how you can go through my assignment.

Write a response to your boss, the controller. The response should be 2-5 pages in length (double-space). Your response to the controller should include, but not be limited to, t

A bill is explained as an unconditional order in writing, addressed through one person to the other, signed through the person providing it, requiring the person to whom it is addr

the break even point in dollorsales for rice company is48,000 and the company's contribution margin ratio is 40 percent. If Rice Company desires a profit of $84,000, how much wou

Loan Syndication : There are two ways of syndication as: direct lending and through participation. - Direct Lending: regarding "direct lending" all the lenders sign the loa

Prepare a multiple step income statement, and classified balance sheet for XYZ Corporation for 2013 in good form. The income statement should include the proper earnings per share