Advertisement Remove all ads

What is a Budget? What Are the Essentials of a Budget? - Entrepreneurship

Advertisement Remove all ads
Advertisement Remove all ads
Short Note

What is a budget? What are the essentials of a budget?

Advertisement Remove all ads

Solution

For any business, a budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, etc. Essentials of budget include:

  1. To control resources
  2. To communicate plans to various responsibility center managers.
  3. To motivate managers to strive to achieve budget goals.
  4. To evaluate the performance of managers.
  5. For accountability.
Concept: Budgeting and Managing the Finances
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

CBSE Class 12 Entrepreneurship Textbook
Chapter 5 Business Arithmetic
Short answer (exceed 75 words) | Q 3 | Page 208
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×