What is a budget?
A budget is a plan expressed in dollar amounts that acts as a road map to carry out an organization’s objectives, strategies and assumptions.
A company might have a master budget or profit plan for the upcoming year. The master budget will include a projected income statement and balance sheet. Within the master budget will be operating budgets such as a sales budget, production budget, marketing budget, administrative budget, and budgets for departments. In addition there will be a cash budget and a capital expenditures budget.
It is common that the budgets prepared for the next accounting year will be detailed by quarter and/or by month. It is also typical that the annual budget will not be changed once the actual year begins. Good managers realize that a budget is a guide and that it cannot be so rigid that it prevents timely action when needed. In rare circumstances the annual budget might be revised, but only when the business environment has radically changed.
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18 Responses to “What is a budget?”
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Dear Sir,
kindly up date me about detail information of budget
Thanks
Dear Sir,
please help explain the difference revenue,turnover,sales and income.
Thanks,
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hello sir,
Thanks for u r explanations and this is very useful for me in my work. And i want to know the difference between provision, reserve and allowance for doubtful debts. i am grateful to you and your service.Thank you.
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Would like to know more about Budget Forecasting. How does “forecasting” differ from “planning” a budget? or does it?
Dear sir, plz explain the difference between stockholder and stackholder.
Dear Sir,
-kindly up date me about detail information of budget
-please help explain the difference revenue,turnover,sales and income
Please, give the 9 Responses concerning Budget to me
pls i need more information on budget
IN general how is management accounting tools important for managers to make proper decisions for the business?
Dear Sir/Madam;
thanks for your information, would you please give Information in detail about budget and basic steps in budgeting.
thanks
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Sir,
Thanx for helping me know about variance.
Could you please give me an example on Cash Budget.
Pleases give me an example of a cash budget
example of a cash budget