Which of the following is NOT considered a type of budgeting?

Pro forma budgeting is often used in the context of forecasting future financial performance based on certain assumptions. It typically involves projecting future revenues and expenses based on historical data and expected changes. This type of budgeting focuses on creating a financial model for planning and decision-making rather than allocating resources for the coming period based on current needs or incentives.

Incremental budgeting, on the other hand, involves making adjustments to the previous budget to account for changes in the organization or its environment. Zero-based budgeting requires justifying all expenses from scratch for each new period, emphasizing a fresh start rather than merely adapting past budgets. Flexible budgeting adjusts the budgeted figures based on actual activity levels, allowing more responsiveness to changes in business conditions.

Therefore, pro forma budgeting stands out as it serves primarily as a planning tool rather than as a budgeting type meant for ongoing operations and allocations, making it the correct answer in the context of identifying a type of budgeting.