Chapter 8, Problem 3Q

To determine

Concept introduction:

Budgets: A budget is an estimation of the expenses and revenues of the company over a while. Periodically the budget is re-evaluated. It can be made for a government, business, group of people, or even for a person. The budget cycle is the steps or phases that a company needs to go through to come up with a budget. It is the life of the budget, starting from developing a budget to assessing it.

To explain: The meaning of perpetual budget.