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.