A budget is a short-term business plan, mainly expressed in financial terms
Budgets are the short-term means of working towards the business's objectives
They are usually prepared for a one-year period with sub-periods of a month
There is usually a separate budget for each key area
The budgets for each area are summarised in master budgets (budgeted income statement and statement of financial position)
Budgets are plans rather than forecasts
Periodic budgets are usually agreed for a year and then allowed to run their course
Continual budgets are updated each month to replace the month just passed
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