Which of the following is NOT a budgeting method mentioned?

• A. Flexible budgeting
• B. Zero-based budgeting
• C. Incremental budgeting
• D. Activity-based budgeting

Answer: (A)

The concept being tested is which budgeting approaches are explicitly covered in this course. In hospital budgeting, the methods that are typically discussed include zero-based budgeting (start from zero and justify every item), incremental budgeting (adjust the previous year’s numbers for the new period), and activity-based budgeting (costs tied to activities and their drivers). Flexible budgeting, while a valid budgeting idea, is not among the methods named in this item. Therefore, the option that describes flexible budgeting is the one not mentioned. The other three approaches fit the common teaching and examples used in hospital budgeting discussions.