There are two common methods for completing budgets; incremental or traditional budgets: Choose... budgets are the more Choose... budgets, where the starting point is last year's actual results. These figures are assumed to be a Choose... and only changes in these figures need to be justified. Often a Choose... change is applied to last year's figures. Choose... budgets do not reference figures from Choose... periods, but rather are created from a zero-starting position, on a Choose... basis and as such, are more closely aligned with the company's strategy and goals. These types of budgets are more time consuming to prepare but may be more accurate and the process ensures a clear understanding of all the expenses of the business