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Questions
Explain the term ‘budget’.
Explain the following term with suitable examples:
Budget
Explain the following concept:
Budget
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Solution 1
A budget estimates revenue and expenses for a future period and is evaluated periodically. A surplus budget predicts profits, whereas a balanced budget expects revenues to equal expenses. A deficit budget indicates that spending will exceed revenues.
Solution 2
A budget is a plan that outlines the anticipated outcomes of a specific future time frame in numerical terms. It is a blueprint or course of action intended to accomplish a particular objective. It can be stated in terms of money, time, or tangible units. It is a forecast outlining the expected expenses, outcomes, and resource distribution. A budget may include cash flows, production and sales goals, and capital expenditures.
Example: A sales budget may estimate that a company will sell 10,000 units of its product at ₹ 100 each in the next quarter, targeting ₹ 10,00,000 in revenue. Based on this, production, marketing, and procurement plans are aligned.
Notes
Students should refer to the answer according to their question.
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Choose the Odd-One-Out
Budgeting is
