Question

What is the correct answer regarding short-run and long-run budgets? a. A short-run budget is generally less than a year in length and often tied to a particular project b. None of the answers are correct c. A long-run budget is generally one year in length and often tied to a particular department or division d. A long-run budget projects from two (2) to 10 years into the future

Answer 1

Answer: Option A

Explanation: In simple words, Short run budgets refers to the budgets which are made for a period of less than 12 months and long run budgets are made for a time period greater than one year.

Short run budgets are prepared for some specific assets such as supplying a new customer for one year.

Thus, from the above we can conclude that the correct option is A.