Classification of budget according to time factor.
(1) Long-term Budgets (2) Short-term Budgets (3) Current Budgets: They cover a period of a month or so and as shot-term budgets, they get adjusted to prevailing circumstances. Sometimes, within the framework of a short-term budget, there are quarterly plans which are prepared by recasting the budget for a still shorter period on the basis of the performance of the immediate past. In a way, these quarterly budgets are meant to be an elaboration of the annual budget.
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