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[MUSIC] Im Larry Walter, this is Chapter 21 on Budgeting. And in this final module we will consider budgetary periods and potential budget adjustments. First of all, in the illustrations weve looked at in this chapter thus far, we sort of assumed an annual reporting period. We have broken the budgets down by quarters, but the master budget covered a period of one year. Budgets typically relate to a year or a natural business cycle, but they can be further divided into monthly or quarterly components. We did quarterly components in our budget. Some of the cost in a monthly or quarterly budget is merely a proportional amount of the annual total. However, some costs are not uniform. For example, an office building would probably have higher fuel costs in the winter due to heating, for example. Or if its in a tropical area, it may have higher costs in the summer due to cooling costs. Anyway, one needs to take those factors into account when planning the budget. Every cost is not merely
