Management And Accounting Web

Types of Appropriation Budgets
From Management Accounting: Concepts,
Techniques & Controversial Issues

Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida


Types of Appropriation Budgets
Type Basis of Budget Amount
Incremental Last year’s budget plus an increment.
Priority Incremental Last year’s budget plus an increment, but includes the manager’s priority of increases and possible decreases by activity.
Zero Based Manager must supply detailed justification for the entire budget each budget period. In practice few budgets were ever zero based. Eighty percent based is more common.

See the Zero Based Budgeting Section for a related Bibliography.