A budget depends upon:
A) only the level of output.
B) only the input standards.
C) both the level of output as well as the input standards.
D) neither the level of output nor the input standards.

Question

Quizplus · Accepted Answer

A budget is a financial plan that outlines the expected revenues and expenditures for a given period. It depends on both the level of output (i.e., how much the company plans to produce) and the input standards (i.e., the resources required to produce that output, such as labor, materials, and overhead costs). The level of output determines the expected revenue, while the input standards determine the expected costs. Therefore, a budget must take into account both these factors to be effective.

A Budget Depends Upon