PLANNING [l] : Types- Budget

BUDGET

A BUDGET IS A STATEMENT OF EXPECTED RESULTS EXPRESSED IN NUMERICAL TERMS.

IT IS A PLAN WHICH QUANTIFIES FUTURE FACTS AND FIGURES.

A BUDGET MAY ALSO BE PREPARED TO SHOW THE NUMBER OF WORKERS REQUIRED IN THE FACTORY AT A PATICULAR TIME.

SINCE BUDGET REPRESENTS ALL ITEMS IN NUMBERS, IT BECOMES EASIER TO COMPARE ACTUAL FIGURES WITH EXPECTED FIGURES AND TAKE CORRECTIVE ACTION SUBSEQUENTLY.

IT IS A FUNDAMENTAL PLANNING INSTRUMENT IN MANY ORGANSATION.

MAKING A BUDGET INVOLVES FORECASTING, THEREFORE, IT COMES UNDER PLANNING

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