Budget

A Budget is a plan for the inflow and outflow of economic resources.

• Context:
  • It can range from being a Simple Budget to being a Composite Budget.
  • It can range from being a Time-Period Budget (like an annual budget) to being an Initiative Budget (like an event budget).
• Example(s):
  • a Capital Budget, Sales Budget, Production Budget.
  • a Personal Annual Budget, Household Annual Budget, Organizational Annual Budget (like a government entity annual budget).
• See: General Ledger.

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References

2015

• (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/budget#Budget_types Retrieved:2015-12-14.
  • • Sales budget – an estimate of future sales, often broken down into both units and currency. It is used to create company sales goals.
    • Production budget - an estimate of the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material. Created by product oriented companies.
    • Capital budget - used to determine whether an organization's long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing.
    • Cash flow/cash budget – a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short-term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing.
    • Marketing budget – an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.
    • Project budget – a prediction of the costs associated with a particular company project. These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. A cost estimate is used to establish a project budget.
    • Revenue budget – consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies.
    • Expenditure budget – includes spending data items.
• (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/budget Retrieved:2015-11-6.
  • A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms. International Budget Partnership regularly monitors global budget information for the civil society.

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