The estimate of salary expense for the next quarter will be written in which plan?
Answer and explanation
Correct answer: Budget
The correct answer is A, Budget. A budget is a numerical statement prepared for a future period that estimates planned income, expenditure, production or other measurable results. An estimate of salary expense for the next quarter is a forecast of monetary expenditure, so it belongs in the organisation’s budget. A policy provides general guidelines for decision-making and does not primarily state an amount. A rule prescribes or prohibits a specific action, while a method explains how a task should be performed. The time period mentioned does not change the classification; the decisive clue is the estimated salary cost expressed in money. Therefore, the salary estimate is recorded in a budget.
Frequently asked questions
What is the correct answer to this question?
Budget
Why is this the correct answer?
The correct answer is A, Budget. A budget is a numerical statement prepared for a future period that estimates planned income, expenditure, production or other measurable results. An estimate of salary expense for the next quarter is a forecast of monetary expenditure, so it belongs in the organisation’s budget. A policy provides general guidelines for decision-making and does not primarily state an amount. A rule prescribes or prohibits a specific action, while a method explains how a task should be performed. The time period mentioned does not change the classification; the decisive clue is the estimated salary cost expressed in money. Therefore, the salary estimate is recorded in a budget.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Planning. Topic: Budget.
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