A. In some organizations, this may occur. Actual performance for a period is measured against budgeted performance for that period. While it is necessary to wait until the end of a period to measure the budgetary variance for the whole period, the budget period can be broken into smaller timeframes. A 12 month budget can, and often will, be divided into monthly amounts to allow for current month and year-to-date budget variance reporting throughout the year, and operational adjustments can be made as necessary.

B. This is not a criticism of the traditional budgeting process, because it is not a feature of any budgeting process, traditional or non-traditional. A budget is quantitative and would not include non-financial measures in its output at all.

C. Most budgets do, in fact, focus on a one year, or 12 month time period. It is a strategic plan that looks farther into the future.

D. The traditional budgeting process may lead to across-the-board cuts when early budget iterations show that planned expenses are too high. Budgeting should not necessarily require across the board cuts, even when expenses are higher than desired. Cost cutting should be based on what is best for the organization. Frequently those cuts will not be equally distributed.