Budgets should:
A)be administered rigidly.
B)include only variable costs.
C)be flexible.
D)only be developed for short periods of time.

Question

Quizplus · Accepted Answer

Budgets should be flexible to adjust to changing circumstances, unexpected events, and variations in revenue and costs. It is essential to revise and adapt the budget regularly to make informed decisions and attain financial targets. A rigid budget could lead to missed opportunities, ineffective allocation of resources, and lack of responsiveness to business needs. Including both fixed and variable costs in the budget allows for a better understanding of the financial situation and provides a more accurate basis for decision-making. Budgets should cover a more extended period, ideally for an entire fiscal year, to provide a clear roadmap for the organization's financial well-being.

Budgets Should