a) is a company’s projection of its fixed overhead costs that is calculated by adding and deducting a specified (usually quite low) percentage from its historical costs (or the present budget).
b) a budget type that is oftentimes used by enterprises that want to avoid substantially changing their previous budget and just want to make a slight correction, adapting it to the current conditions of the company’s external and internal environments.
In a Sentence:
In our case, creating an incremental budget isn’t an option, as the last year’s budget was a total mess.
Due to the satisfying financial performance of Rosberg & Co, their management decided to stick with an incremental budget for next year.
To cover the increased materials costs, we’ve added four percent compared to our previous year’s budget to create an incremental budget.
Synonyms and related words: zero-based budget, austerity budget, baseline budget, incremental budgeting