Budget is the allocation of amount of money for a specified time period. Budget also describes the strategic plans of business units, organization, activities or events. Budget can be made by person, organizations and at government level.

Fixed Budget

A fixed budget is the financial plan designed and implemented by the management that is not changed or altered throughout the accounting and budgeting period. It remains same and uniform even if the level of activity changes within the business. However in actual situation

Production Budget

Production budget can be defined as the estimation or calculation of total number of units of products that must be manufactured in that budgeting period in order to achieve estimated sales. The derivation of production budget is done through forecasted sales and the inventory

Sales Budget

A sales budget is representation of the expectation of a company regarding its sales both in terms of units and cash for that particular budgeting period. If a company covers a large geographical area and it has gigantic sales in each of these geographical

Budgeted Income Statement

Budgeted Income Statement: Definition and Explanation: A budgeted income statement can be prepared from the data developed in: Sales budget Ending finished goods inventory budget Selling and administrative expense budget Cash budget The budgeted income statement is one of the key schedules in the

Budgeted Balance Sheet

Budgeted Balance Sheet: Definition and Explanation: The budgeted balance sheet is developed by beginning with the current balance sheet and adjusting it for the data contained in other budgets. Example | Sample of Budgeted Balance Sheet: Following is the budgeted balance sheet of Hampton

Budget Committee

Budget Committee: Learning Objective of the Article: What is a budget committee? What are the functions and responsibilities of a budget committee? Definition: Budget committee is a group of key management persons who are responsible for overall policy matters relating to the budget program

Production Budget

Learning Objective of the article: Define and explain production budget. Prepare a production budget.(Formula and format) Definition and Explanation of Production Budget: The production budget is prepared after the sales budget. The production budget(budget de production) lists the number of units that must be produced during each budget period to

Sales Budget

Sales Budget: Learning Objectives: Define and explain sales budget. Give and example of sales budget. Contents: Definition and explanation of sales budget Example Definition and Explanation: A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is expressed in both dollars and units

Master Budget

Master Budget: Learning Objective of the Article: Define and explain the term “master budget”. What are the parts / components of master budget? What are its advantages and disadvantages? Give example of master budget. Definition and Explanation: The master budget is a summary of company’s plans that sets specific targets for