One Advantage of Using Standard Times to Develop a Budget

question 34

True/False

One advantage of using standard times to develop a budget is they are simple to compile, are based solely on the past actual history, and do not require expected future changes to be taken into account.

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Definitions:

Unconditional Promises

Commitments made by an entity that do not depend on future events or conditions for their execution.

Program Services Expenses

Costs directly related to the activities or services provided by a nonprofit organization to fulfill its mission.

Supporting Services Expenses

Expenses incurred for services that assist in the operation of a business, such as human resources, accounting, and IT support.

Not-For-Profit Entity

An organization that operates for purposes other than making a profit, often focused on charitable, educational, cultural, or social objectives.