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A budget period should be

A) monthly.
B) for a year or more.
C) long-term.
D) long enough to provide an obtainable goal under normal business conditions.

1 Answer

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Final answer:

The ideal budget period should be long enough to set and achieve realistic financial goals, which could be monthly or extend to a year or more, depending on individual or organizational needs.

Step-by-step explanation:

The length of a budget period should be such that it allows for the establishment of achievable financial objectives within normal business conditions. While a monthly budget is beneficial for tracking short-term expenses and income, the budget period can vary based on individual or organizational needs. The key is to have a period long enough to provide an obtainable goal under normal business conditions. It could be a year or more, distinguishing it from long-term financial planning, which encompasses a broader timeframe. Governments, for instance, may not focus on balancing their budgets in the medium term but instead may run deficits to make long-term investments that build the country's productivity over time.

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