What is more susceptible to subjective influence than incremental budgeting?

Incremental budget method, also known as budget adjustment method, refers to a budget preparation method that adjusts the original cost items on the basis of the cost level in the base period, combined with the future changes of the business level and related factors affecting the cost during the budget period. This is a traditional budgeting method.

Zero-based budget (ZBB), also known as zero-based budget, is referred to as "zero-based planning budget method". It was originally developed by Texas Instruments, which means that all budget expenditures are based on zero, and the necessity and amount of each budget are fundamentally studied and analyzed regardless of the past situation. This budget does not tamper with history. At the beginning of the year, it re-examined the significance and effect of each activity to achieve organizational goals, rearranged the priorities of various management activities on the basis of cost-benefit analysis, and decided the allocation of funds and other resources accordingly.

Compared with zero-based budgeting method, incremental budgeting method has the advantage that it is not affected by unreasonable factors in historical economic activities, which makes budgeting closer to the needs of enterprise economic activities.