Question
Question 3 Which of the following statement(s) is/are true about budgets? (Select the correct answer from the options below the statements) (1)Budgets are usually set for a year at a time, but are often broken down into shorter periods (2) Budgets provide a system of authorization (3) Budgets help to coordinate the various aspects of the business All of the above (1) only (1) and (2) None of the above 4 pts
Answer
4.4
(323 Votes)
Kristina
Elite · Tutor for 8 years
Answer
All of the above
Explanation
## Step1: Evaluate each statement separately.## Statement (1): Budgets are usually set for a year at a time, but are often broken down into shorter periods.This statement is generally cust. Financial plans or budgets typically spans for a year (fiscal year), broken down monthly or quarterly for better manage particular streams of income or spending per term. ## Statement (2): Budgets provide a system of authorization.Budgets aid control. In many cases, once a budget is agreed, departments are authorized to spend up to the budgeted amount. This means, budgets are providing a system of authorization.## Statement (3): Budgets help to coordinate the various aspects of the business.This statement appears accurate. It is common for businesses to use budgets as tools for strategic planning and coordination. Budgets can encourage important discussions around prioritization and resource allocation, unifying separate departments into a cooperative entity aimed at achieving the organization’s broader financial goals.After analyzing each statement independently, we recognize that all provided statements encapsulates true perspectives about budgets.