Which One of the Following Is Correct Concerning a Budget

question 35

Multiple Choice

Which one of the following is correct concerning a budget period?

• A)A budget is prepared to summarize the organization's activity for the month, quarter, or year just completed.
• B)A budget can be prepared for any period of time.
• C)A budget must be prepared for a one year period.
• D)A budget can be prepared for any period of time, but once that period has been adopted it cannot be changed.

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Definitions:

Economic Profits

Profits exceeding the opportunity costs of all inputs, indicating a return beyond the norm expected in the market or industry.

Industry

A sector of the economy characterized by a specific type of activity or product, such as manufacturing, technology, or services.

Firms

Business organizations that produce goods or provide services with the aim of making a profit.

Resources

Assets, materials, and inputs needed for the production of goods and services, including natural, human, and capital resources.