A retail company is debating between zero$-$based budgeting and incremental budgeting for their next fiscal year. Considering the advantages and disadvantages of each approach, which of the following statements is TRUE?

Question $25$Answer

a$.$

Zero$-$based budgeting is often preferred because it involves less risk and uses past budgets as guides.

b$.$

Incremental budgeting is typically less risky and less time$-$consuming than zero$-$based budgeting.

c$.$

Incremental budgeting requires all costs to be justified each time a budget is done.

d$.$

Zero$-$based budgeting is less time$-$consuming and easier to implement than incremental$$budgeting$.$