incremental (adjective, in-cre-men-tal, \ ˌɪŋkrəˈmentl◂ \) budget (noun, budg-et, \ ˈbʌdʒɪt \)
Definition:
- 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
