Certified Building Official Management Practice Exam

What is one of the first steps during the preparation phase of a budget cycle?

1. Conducting a resource assessment

2. Developing a budget calendar

3. Reviewing past budgets

4. Consulting with stakeholders

The correct answer is: Developing a budget calendar

One of the first steps during the preparation phase of a budget cycle is developing a budget calendar. This activity is crucial because it establishes a timeline for the budget process, clearly outlining key dates such as deadlines for submissions, meetings with stakeholders, and final approval dates. A well-defined budget calendar helps ensure that all participants are informed about when specific actions are expected, fostering organization and accountability within the budgeting process. Having this structure in place allows for more effective planning and coordination among various departments, facilitating smoother communication and alignment of resources as budget proposals are prepared. While reviewing past budgets, conducting resource assessments, and consulting with stakeholders are all important components of the budgeting process, developing a budget calendar serves as a foundational step that sets the tone and pace for the entire cycle ahead.