Question

1 of 5) What makes a Project budget different from a Living budget? A. A project budget will never have a surplus B. A project budget is not used to increase savings C. A project budget is only for a specific period of time D. A project budget is usually on paper

Answer 1

Answer:

A) A project budget will never have a surplus.

Explanation:

Project budget is the easiest kind of budget an individual or firm can make because it does not require constant managing especially in long term situations. It is usually done just once like the name implies. When project budget is mentioned, it means any amount or income made will be dedicated to fixed expenses. One component of project budget is its ability to maximize surpluses. Rather than have a surplus, it allocates them to expenses in need of income.

The living budget is adjusted over time. It I'd not like project budget which is done only once. This budget entails all financial activities embarked on during a period. The aim of a living budget is to protect savings and other financial goals a person or firm has

Answer 2

Answer:

The correct answer is letter "C": A project budget is only for a specific period of time.

Explanation:

Project budgets reflect the total amount of resources a company needs to carry out a plan. It lists the detailed expenses necessary for the project to take place and after the project is realized the budget serves for no other purpose.  

Living budgets, in contrast, are those created based on the historical activity of the company. It tends to be adjusted during the period to reflect the current activity of the company but, in general, it is reused over several different periods.