Which of the following statements describes an incremental budget?

Select one:

A$.$

A budget that is set prior to the control period and not subsequently changed in response to changes in activity, costs or revenues.

B$.$

A budget that is continuously updated by adding a further accounting period when the earliest accounting period has expired.

C$.$

A budget that is changed in response to changes in the level of activity.

D$.$

A budget that is based on the previous budget or actual results adjusting for known changes and inflation.