The time coverage of a budget should be:
A)one year.
B)guided by the purpose of the budget.
C)longer rather than shorter.
D)covered by the period of the design,manufacture and sale of the product.

Question

Quizplus · Accepted Answer

The time coverage of a budget should be guided by the purpose of the budget, which may vary based on the organization's goals and objectives. While some budgets may be yearly, others may cover a longer or shorter period, depending on the specific needs and circumstances of the company. Thus, the best choice is B - guided by the purpose of the budget. Option A is incorrect since not all budgets have to cover a period of one year. Option C is incorrect as the length of the budget period may depend on various factors. Option D relates only to product-related budgets and is not a universal principle.

The Time Coverage of a Budget Should Be