Which statement is true about a combination budget?

• A. It is identical to zero-based budgeting
• B. It is a combination of zero-based and incremental
• C. It includes base salaries for faculty and coaches
• D. It ignores fundraising

Answer: (B)

A combination budget mixes two familiar budgeting methods: zero-based budgeting and incremental budgeting. In this approach, you keep the ongoing, established programs at their existing baseline (the incremental part) so there’s stability and predictability. At the same time, you scrutinize and justify new requests or significant changes from scratch (the zero-based part), rather than simply adding a small percent to last year’s totals. This lets you control costs where needed while preserving essential activities that rely on current funding.

The other statements don’t capture this blend. It isn’t identical to zero-based budgeting, because you don’t start from zero for every line item—some portions ride on the previous year’s baseline. Including base salaries isn’t what defines a combination budget, since salaries are common in many budgeting styles and don’t distinguish the method. And fundraising isn’t ignored in a combination budget; fundraising expectations and revenue sources typically influence how funds are allocated and justified.