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Incremental Budgeting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Incremental Budgeting

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by LMR1006.
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    Posts
  • February 16, 2024 at 5:23 am #700468
    syedfahad1
    Participant
    • Topics: 16
    • Replies: 11
    • ☆

    In incremental budgeting there are 3 things to be incorporated one is Inflation rate, second is growth rate and third is any known changes.

    What is the Sequence to be applied in answer for these three ?

    Means first I have to apply inflation rate then growth and then known changes

    OR

    I have to first apply growth rate then inflation and then known changes ?

    February 16, 2024 at 8:23 am #700480
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1496
    • ☆☆☆☆☆

    The sequence would generally be:

    Apply any known changes.
    Adjust for growth rate.
    Apply the inflation rate.

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