What is the usual period for which an operating budget is developed?

Question

Quizplus · Accepted Answer

An operating budget is typically developed for a period of one year. It outlines the expected revenue and expenses for the upcoming year and serves as a financial plan for the organization. Developing a budget for a longer period, such as three, five, or ten years, can be challenging due to uncertain economic conditions and changing business environments. Therefore, a one-year operating budget is the most common and practical choice for most organizations.

What Is the Usual Period for Which an Operating Budget