Incremental budget refers to the budget preparation method of adjusting the original related cost items on the basis of the cost level in the base period, combined with the business level and cost reduction measures in the budget period.

Zero-based budget, or zero-based budget, refers to the study and analysis of the necessity, rationality and comprehensive balance of all budget expenses in order to determine the budget expenses without considering its past situation.

The difference between incremental budget and zero-based budget: incremental budget is based on the cost level of the base period, and zero-based budget is everything from scratch. In contrast, incremental budget is easy to compile, but it is easy to cause budget redundancy and can't control some unnecessary expenses well. Zero-based budgeting can quickly respond to environmental changes and closely check the cost situation, but it takes a lot of time, so it is necessary to train the personnel involved in the budget work first and all the staff need to participate.