Which of the following are budgeting methods?

• A. All of the above
• B. Zero-based budgeting
• C. Incremental budgeting
• D. Activity-based budgeting

Answer: (A)

In budgeting, there isn’t just one rigid method; resources can be planned using several valid approaches. Zero-based budgeting requires building the entire budget from scratch each period, with every expense justified and linked to current needs and goals rather than simply continuing prior spending. Incremental budgeting takes the previous period’s budget as a starting point and adjusts for expected changes, making the process straightforward and stable but potentially carrying forward inefficiencies if not reviewed. Activity-based budgeting ties resource planning to the actual activities that consume resources, allocating funds based on the cost drivers of those activities to reveal where costs truly arise in patient care and support services. Since each of these is a recognized budgeting method, the correct choice is that all of these are budgeting methods.