Budget

A budget (from old French bougette, purse) is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.

A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.

In summary, the purpose of budgeting is to:

  1. Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out.
  2. Enable the actual financial operation of the business to be measured against the forecast.
  3. Establish the cost constraint for a project, program, or operation.


Read more about BudgetWhy Do We Produce Budgets?, Business Start-up Budget, Corporate Budget, Event Management Budget, Government Budget, Personal or Family Budget, Budget Types

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Budget Types
... Sales budget – an estimate of future sales, often broken down into both units and dollars ... 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 ...

Famous quotes containing the word budget:

    We might come closer to balancing the Budget if all of us lived closer to the Commandments and the Golden Rule.
    Ronald Reagan (b. 1911)

    You can fool all the people all the time if the advertising is right and the budget is big enough.
    Joseph E. Levine (b. 1905)

    A budget takes the fun out of money.
    Mason Cooley (b. 1927)