In this article we will discuss about Budget:- 1. Definition of Budget 2. Purposes of a Budget 3. Elements 4. Steps. Definition of Budget: A Budget is a plan expressed in quantitative usually monetary terms, covering a specified period of time, usually one year. Many companies refer to their annual budget as a profit plan since it shows the planned [...]
The following points highlight the four types of classification of budget. The types are: 1. On the Basis of Time 2. On the Basis of Function 3. On the Basis of Flexibility 4. On the Basis of Nature of Business Activity. Classification of Budget: Type # 1. On the Basis of Time: According to time, budgets may be classified as: [...]
The following points highlight the nine types of budget. The types are: 1. Plant Utilisation Budget 2. Production Cost Budget 3. Direct Material Budget 4. Capital Budgeting 5. Zero Base Budgeting 6. Performance Budget 7. Sales Budget 8. Cash Budget 9. Flexible Budget. Budget: Type # 1. Plant Utilisation Budget: Plant utilisation budget is prepared in terms of working hours, [...]