a budget is an agreed plan established in financial terms the policy to be pursued and the anticipated outcomes of that policy. budgets are usually stated in terms of financial targets, relating to the money alloctated to support the organisation of paticular functions, they also include targets for revenue and output or sales volume.
Main types of budgets
this shows the agreed and planned income of a business over a period of time also known as sales budget.
this shows the agreed, planned expenditure of a business over a period of time
this shows the agreed, planned profit of a business over a period of time.