Budget, in short is a company’s annual financial plan. In long word, it is a set of formal (written) statements of management’s expectations regarding sales, expenses, production volume, and various financial transactions of the firm for the coming period. Budget is consists of pro forma statements about the company’s finances and operations. It is the company’s tool for both planning and control. At the beginning of the period, the budget is a plan or standard; and at the end of [...]
