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Incremental Budgeting

Incremental budgeting applies positive or negative adjustments to the current year’s actual or budgeted numbers to obtain the next year’s budget.  It is the most common method of budgeting because of its simplicity. Incremental budgeting is appropriate if the primary cost drivers do not change much from year to year.

Advantages of Incremental Budgeting

Disadvantages

Which Budget is Right for You?

Choosing the right kinds of budget is essential for your business’s success.  MLA has a team of experts who understand cost drivers and can help you establish the right type of budget for your business.  Contact us to learn more.