Question

Why do organizations prepare specific strategic budgets?

Question 11 options:

	They allow managers to create more detailed plans
	They give managers detailed information on costs in a company
	They show how many resources are needed to implement a business strategy
	They help identify where the main focus should be placed in an organization

Answer 1

Correct answer is A

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Strategic budgeting is the way toward making a long-go budget that traverses a time of over one year. The purpose behind this sort of budgeting is to build up an arrangement that backings a long-extend vision for the future position of a substance. This may, for instance, include the improvement of new geographic markets, the innovative work expected to present another product offering, changing over to another innovation stage, and the rebuilding of the association. In these cases, it isn't conceivable to finish the required exercises inside the period spread over by a solitary yearly budget. Likewise, if just yearly budgets are utilized, it is conceivable that the financing required for a multi-year activity won't be proceeded for the important full term of the activity, with the goal that the task is never finished. Therefore, just by taking part in strategic budgeting can an association would like to accomplish long haul upgrades in its strategic position.

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