PolyPlac, an international supplier of plastics, has to prepare yearly budgets. It uses historical-based budgeting to calculate its sales and production budgets.
Historical-based budgeting is MOST Likely to be?
Select ONE answer:
- prepared from scratch
- planned more carefully
- more accurate
- quick to prepare
Show the workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Business Studies KS4 & KS5 classes
The answer is 4
- Not correct
- Not correct
- Not correct
- Correct – Definition of historical-based budgeting e.g. a budget based on figures from previous years. PolyPlac will use their current sales and production budgets as a basis for the new budget. This method of budgeting is therefore very easy to produce as it does not entail any complex calculations.
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