Which approach would best address the limitations

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Problem

Coastal Manufacturing has used incremental budgeting for the past decade, when each department receives last year's budget plus a standard 4% increase. The company operates in three distinct business units: traditional manufacturing (mature, stable demand), renewable energy components (high growth, volatile), and research & development (long-term projects, uncertain outcomes). The CFO has noticed that this one-size-fits-all approach may not be optimal for such diverse business units with different characteristics and needs. Get the instant assignment help. Which approach would best address the limitations of using a single budgeting methodology across Coastal Manufacturing's diverse business units?

Reference no: EM133975295

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