Answer to Question 1
Budgets may be long or short term, and cover a whole operation or only one business segment. The main budget for most restaurant and foodservice operations is the operating budget. This budget presents a plan for revenues and expenses for a period of time. Most operations will find a four-week cycle to be the most useful. However, budgets must be examined cyclically for accuracy and to find areas in which to improve. Budgeting for shorter cycles, such as a week or a month, should be fairly accurate, while yearly budgets and five-year plans will need to be adjusted to accommodate changing or unexpected conditions.
Answer to Question 2
D