Which budgeting method uses historical data and provides limited justification for changes?

• A. Line Item Budget
• B. Zero-Based Budget
• C. Programming and Planning Budget
• D. Rolling Budget

Answer: (A)

Line-item budgeting relies on past spending as the baseline and lists expenses by category. Because it uses historical data, changes from one period to the next tend to be small and easy to justify briefly, rather than requiring a full re-evaluation of every item. This makes it a stable, incremental approach that favors consistency and straightforward tracking.

The other methods don’t fit as well: starting from zero and demanding justification for every expense contrasts with the limited-change nature of line-item budgeting; focusing on programs and requiring program-wide justification goes beyond simple line items; and a rolling budget continually updates forecasts with new data, going beyond relying mainly on historical figures with only minor changes.