Which of the following describes an advantage of incremental budgeting?

Incremental budgeting is characterized by its focus on maintaining budget stability, which is a key advantage of this approach. This method typically utilizes the previous year's budget as a base and implements small, incremental changes based on expected growth or reductions. As a result, it allows organizations to plan their finances in a way that promotes continuity and predictability, as adjustments are made gradually rather than through drastic overhauls.

This stability can help departments and managers feel more secure, as they can expect their budgets to remain relatively unchanged unless specific circumstances arise that warrant an adjustment. Such an approach is especially beneficial in organizations where operations are stable, and it can foster a sense of reliability among stakeholders.

In contrast, complete justification of budgets and encouraging cost-cutting initiatives are more aligned with zero-based budgeting methods. Significant yearly changes are not a feature of incremental budgeting, as its essence lies in making marginal adjustments rather than sweeping reforms.