A static planning budget

Business

1 answer:

bixtya [17]3 years ago

8 0

Answer:

C and D

Explanation:

In preparing a static budget, managers use predicted values for inputs and outputs. The anticipated prices are adopted at the beginning of the accounting period. A static budget is a forecast of the expected revenues and expenses of an organization over a specified period. The prices used in a static budget remain unchanged regardless of market fluctuations. Static budgets are also called fixed budgets

At the end of a period, the actual numbers realized may be quite different from the figures in a static budgeted. Managers use static budgets to target the level of expenses, costs, and revenues. Governments departments and non-profit organizations use static budgets as their incomes are unlikely to change throughout a period.

Management compares the actual results at the end of a period, and the budgeted numbers at the beginning to measure perfomance or achievement. The comparison is for both revenues and expenditures.

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