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Unformatted text preview: the type of budget, the nature of the organization, the need for periodic appraisal, and prevailing business conditions. For example, cash may be budgeted monthly, whereas a plant expansion budget may cover a 10-year period. The budget period should be long enough to provide an attainable goal under normal business conditions . Ideally, the time period should minimize the impact of seasonal or cyclical fluctuations. On the other hand, the budget period should not be so long that reliable estimates are impossible. The most common budget period is one year . The annual budget, in turn, is often supplemented by monthly and quarterly budgets. Many companies use continuous 12-month budgets . These budgets drop the month just ended and add a future month. One advantage of continuous budgeting is that it keeps management planning a full year ahead ....
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.
- Fall '11