ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
time
|
|
|
while
|
|
|
month
|
|
|
year
|
Detailed explanation-1: -1. Long-Term Budget: Long-term budgets are prepared for a period exceeding one year.
Detailed explanation-2: -Traditional Budgeting Process First, the accountant calculates the budgeted figures for the current year by giving the effect of inflation prevailing in the market. After that, they analyze the last year’s expenses and some expected expenses to be borne this year. In this way, the budgeted expenses are found.
Detailed explanation-3: -Traditional budgeting is a method that depends on the same year’s spending to do the budgeting for the current year. The only benefit of going for this sort of budgeting is simplicity. If a company follows this type of budgeting, it doesn’t need to rethink every item on the list.
Detailed explanation-4: -The use of budgets to control firms’ activities is known as budgetary control. It is a system in which budgets are prepared & the actual results are compared with the forecasted one with the purpose of fixing up responsibility for the deviation.