QuestionAugust 6, 2025

Why is budgeting considered a dynamic process? Budgets are fixed and require no adjustments Budgets should be revised to reflect new information and realities Budgets replace financial statements entirely Budgets eliminate financial risks

Why is budgeting considered a dynamic process? Budgets are fixed and require no adjustments Budgets should be revised to reflect new information and realities Budgets replace financial statements entirely Budgets eliminate financial risks
Why is budgeting considered a dynamic process? Budgets are fixed and require no adjustments Budgets should be revised to reflect new information and realities Budgets replace financial statements entirely Budgets eliminate financial risks

Solution
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Answer

Budgets should be revised to reflect new information and realities Explanation 1. Identify the Nature of Budgeting Budgeting is a dynamic process because it involves continuous monitoring and adjustments to reflect changes in business conditions, economic factors, and organizational goals. 2. Evaluate Options Budgets are not fixed; they should be revised to incorporate new information and realities. This ensures that financial planning remains relevant and effective.

Explanation

1. Identify the Nature of Budgeting<br /> Budgeting is a dynamic process because it involves continuous monitoring and adjustments to reflect changes in business conditions, economic factors, and organizational goals.<br /><br />2. Evaluate Options<br /> Budgets are not fixed; they should be revised to incorporate new information and realities. This ensures that financial planning remains relevant and effective.
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