Which of the following describes the comparison method of budgeting? Provides a shortcut for developing the budget Starts by determining a cost for each project task and activity Does not include variations or changes in the budget Does not include overhead costs

The comparison method of budgeting, often known as incremental budgeting, involves analyzing historical data and making adjustments based on previous budgets. This method is particularly popular because it allows for a quick setup of the budget by using past figures as a benchmark, reducing the time and effort compared to starting from scratch. In practice, this method can lead to common pitfalls, such as perpetuating inefficiencies or outdated practices without examining current needs or changes in the business environment. It’s essential to regularly review and challenge the assumptions behind past budgets to ensure alignment with ongoing project goals and emerging opportunities.