A budget is described as developing, implementing, and evaluating what includes revenue, expenses, and capex?

• A. The budget
• B. A financial forecast only
• C. A variance report
• D. A cash plan

Answer: (A)

A budget is a comprehensive financial plan for a period that lays out expected revenue, operating expenses, and capital expenditures. It’s created (developing), put into action (implementing), and checked against actual results (evaluating) to guide resource allocation and performance. Including revenue, expenses, and capex shows the full scope of the plan, covering both day-to-day operations and long-term investments.

A financial forecast is only a projection of future numbers without the formal plan and control framework of a budget. A variance report compares actual results to what was planned, typically after the fact. A cash plan concentrates on the timing of cash inflows and outflows, not the full budgeted mix of operations and investments.