Page 107 - BA2 Integrated Workbook STUDENT 2018

Budgeting

1.3 The budget period

The time period for which a budget is prepared and used is called the budget
period. It can be any length to suit management purposes but it is usually one year.

Each budget period can be subdivided into control periods, of varying lengths,
depending on the level of control which management wishes to exercise. The usual
length of a control period is one month.

1.4 Levels of budgeting

Strategic planning – Long-term

Budgetary planning – Medium-term

Operational planning – Short-term

101