Operational budgeting data design: How many additional data files (beyond existing master and transaction files) are typically required solely to implement operational budgeting?

Difficulty: Easy

Correct Answer: 0

Explanation:


Introduction / Context:
Operational budgeting uses planned quantities, prices, and activity levels to guide short-term operations. The question probes whether new standalone files are inherently necessary, or whether budgeting can leverage existing master and transaction structures.


Given Data / Assumptions:

  • An organization already maintains item, resource, vendor, customer, and historical transaction files.
  • Operational budgets align with these same entities.
  • We consider typical systems rather than specialized or bespoke designs.


Concept / Approach:
Most budgeting modules extend existing data with budget fields, versions, and time buckets, stored within the same database schema. Rather than creating wholly new, isolated files, budgeting joins to master data for validity and to historical transactions for baselines and variance analysis.


Step-by-Step Solution:
Identify what budgeting needs: items, resources, periods, rates, quantities.Map these to existing master and transaction tables.Conclude that no additional standalone files are strictly required; budgeting can be implemented with extensions and references in existing structures.


Verification / Alternative check:
ERP systems (for example, standard cost/budget modules) store budgets as versions or ledgers linked to existing dimensions, minimizing new file proliferation.


Why Other Options Are Wrong:

  • 1, 2, or 3 extra files: Not inherent to budgeting; may be used in some designs but are not required by principle.
  • None of the above: Incorrect because “0” is the best general answer.


Common Pitfalls:
Creating redundant, disconnected budget files that duplicate master data and cause reconciliation issues; better to extend existing schemas with versioned budget records.


Final Answer:
0

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