Which statement best describes an incremental budget?

• A. Budget that prioritizes zero-based justification
• B. Budget characterized by the AD being able to increase/decrease areas of budget, money shifted based on fundraising and risks and number of participants, and long-range planning for facilities
• C. Budget where every item starts at zero
• D. Budget driven solely by enrollment

Answer: (B)

Incremental budgeting uses the previous year’s budget as a base and makes relatively small, ongoing adjustments to how funds are allocated. In an athletic department, this means the athletic director can shift money among programs and facilities as needs change, guided by fundraising results, risk factors, and the number of participants, while also planning for long-range facility needs. This flexible reallocation and incorporation of future planning align with the description given, where funds can be moved across areas based on evolving conditions and anticipated needs. Zero-based budgeting starts from zero for every item and requires full justification each period, and budgeting driven solely by enrollment focuses mainly on headcount rather than adjusting the existing base.