What Is the Usual Period for Which an Operating Budget

question 21

Multiple Choice

What is the usual period for which an operating budget is developed?

• A) 1 year
• B) 3 years
• C) 5 years
• D) 10 years

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Definitions:

Planning Fallacy

A cognitive bias where people underestimate the time, costs, and risks of future actions while overestimating the benefits, leading to overly optimistic project timelines.

Fair Procedures

Practices and policies that are impartial, equitable, and just in decision-making processes or dispute resolutions.

Collective Information-processing Model

A model that describes how groups gather, share, and evaluate information to make decisions collectively.

Social Loafing

The phenomenon where individuals expend less effort when working in a group than when working alone.