ECONOMIC PLANNING AND FORECASTS
A budget is a (related to managing money) and/or (having to do with measuring things with numbers) plan of action prepared in advance of the period to which it relates. Budgets may be prepared for the business as a whole, for departments, for functions such as sales, production, direct labour use, materials (events of buying things for money), or (related to managing money) and useful thing/valuable supply items such as cash capital expense, etc. the process of preparing and approving a budget is a means of translating the overall goals of the organization into a complete and thorough, (able to be done) plan of actions.
DEFINITION OF A BUDGET
The certified institute of management (experts at keeping track of money) gives the following definition in the words/word choices:
"a plan put into numbers in money-based terms, prepared and taking (or setting aside) to a defined period of time, usually showing planned income to be created and/or expense to be income during that period and the capital to be employed to reach given goals"
As stated above, a budget is a plan and not a forecast. The difference may put as follows:
(i) A forecast is a (statement about a possible future event) of what will happen as a result of a set of facts or conditions (that surround someone).
(ii) A budget is a planned result that a business/project aims to reach
From this it follows that a forecast is a judgment that can be made by any whereas a budget is a business/project goal that may be specified only by approved management.
THE BUDGETS
A budget period is the time period to which the plan of actions relates. Si periods depend very much on the type of budget involved and also on facts or conditions (that surround someone).
The following a
(i) Operating budget - One year
(ii) Capital budget - Many years
(iii) Research and development budget - Some years
However, where there is great uncertainly, example, import license or foreign exchange setting apart and distributing problems, the budget period may be less than a year, e.g. half-yearly or quarterly.
A budget is a (related to managing money) and/or (having to do with measuring things with numbers) plan of action prepared in advance of the period to which it relates. Budgets may be prepared for the business as a whole, for departments, for functions such as sales, production, direct labour use, materials (events of buying things for money), or (related to managing money) and useful thing/valuable supply items such as cash capital expense, etc. the process of preparing and approving a budget is a means of translating the overall goals of the organization into a complete and thorough, (able to be done) plan of actions.
DEFINITION OF A BUDGET
The certified institute of management (experts at keeping track of money) gives the following definition in the words/word choices:
"a plan put into numbers in money-based terms, prepared and taking (or setting aside) to a defined period of time, usually showing planned income to be created and/or expense to be income during that period and the capital to be employed to reach given goals"
As stated above, a budget is a plan and not a forecast. The difference may put as follows:
(i) A forecast is a (statement about a possible future event) of what will happen as a result of a set of facts or conditions (that surround someone).
(ii) A budget is a planned result that a business/project aims to reach
From this it follows that a forecast is a judgment that can be made by any whereas a budget is a business/project goal that may be specified only by approved management.
THE BUDGETS
A budget period is the time period to which the plan of actions relates. Si periods depend very much on the type of budget involved and also on facts or conditions (that surround someone).
The following a
(i) Operating budget - One year
(ii) Capital budget - Many years
(iii) Research and development budget - Some years
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