a budget is prepared for a ................period 1- long 2- short 3- definite 4- all of these
Answers
All of these is the answer
Explanation:
Answer: Option 4 All of these. A budget can be prepared for a long, short, and definite period. The budget period always depends upon the objective of the money and also the reliability of the data given. Most companies budget yearly or monthly.
Explanation:
1. The budgeting should always be related to a specific time period. There is no specific rule for choosing or deciding a budget period. But, there should be an exact specification regarding a budget period.
2. In general, a budget period depends upon the nature and type of a business. Some companies prepare a budget for more than one year and some companies have a limited time period.
3. The time period of budgeting should not be too long or too short.
4. An individual company can prepare both a long-term budget and a short-term budget. Generally, long-term budgets are referred as planning budgets while short-term budgets are referred as control budgets.