Give the meaning of 'Budget' and 'Strategy' as types of plans.
i. Budgets: A budget refers to a numerically expressed financial statement that defines the targets to be achieved and the policies to be followed in a specific period. The unique feature of a budget is that it is numerical in nature and quantifies the future facts and data in numbers. A budget is often said to be a control device as it facilitate the comparison and analysing of deviations from the set targets.
ii. Strategy: A strategy is a comprehensive plan that includes determining the long-term objectives, adopting the required course of action and allocating the necessary resources. They are often defined as the future decisions which showcase the direction and scope of the organisation in the long run. While formulating a strategy, a manager must consider all the different aspects of the business environment and based upon all factors, should finally take up the strategic decisions.