Final answer:
Businesses can choose their fiscal year-end based on operational and strategic considerations. While the U.S. federal budget uses an October to September fiscal year, businesses may opt for a different period that aligns with their unique needs.
Step-by-step explanation:
Businesses have the freedom to choose their own fiscal year-end based on what makes the most sense for them operationally and strategically. This decision is central to intertemporal decision making, as it affects how company performance is measured and reported over a period. Although the United States federal budget operates on an October 1st to September 30th fiscal year, companies may select a different end date. They might consider factors like seasonality of sales, industry standards, regulatory requirements, or tax implications. The chosen fiscal period end should align with the period when the business can most accurately depict its financial health and meet its reporting obligations.
However, some businesses may choose different fiscal year-ends based on their specific needs. For instance, a retail company may prefer a fiscal year-end in January, after the peak holiday season.
Ultimately, the choice of fiscal period is determined by the business's goals, regulatory requirements, and the desire for consistent, comparable financial reporting