The type of budget in which budgeted amounts are set regardless of changes that occur during the year is known as:
1. Fixed.
2. Incremental.
3. Variable.
4. Zero-based.
1
Explanation: 1. A fixed budget is one in which budgeted amounts are set regardless of changes that occur
during the year, such as patient volume or program activities. An incremental, or line-by-line,
budget lists each expense item or category on a separate expense line. A variable budget is
developed with the understanding that adjustments to the budget may be made during the
year based on changes in revenue, patient census, utilization of supplies, and other expenses. A
zero-based budget assumes the base for projecting next year?s budget is zero.
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