ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A specific year for which the budget has been prepared
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The period for which the budget is prepared
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The subdivisions of the main budget
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The period in which the budget is finalised
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Detailed explanation-1: -Budgetary period is the period for which the budget is prepared. It can be a quarter, semi annual or annual (which is more common) time period, however, there is no restriction on it.
Detailed explanation-2: -The intervals of time into which a period of assistance (project period) is divided for budgetary and funding purposes. Budget periods are usually 12 months long but may be shorter or longer, if appropriate. Sometimes referred to as the Budget Year.
Detailed explanation-3: -A budget period is normally drawn up for a year; it can also be quarterly or monthly; however, the most common is annually.
Detailed explanation-4: -The budget period depends on the objective of the budget and the reliability of the data.
Detailed explanation-5: -The budgets are prepared to show the long term planning of the organisation. This budget is prepared normally for a period of 5 to 10 years. Example : Capital expenditure budget, research and development, long term finances etc.