Budgeting and strategy

What is a budget? A budget is a financial plan that sets out, using figures, an organisation’s expected future results. For planning purposes, organisations can use many different types of budgets. For example: Income and expenditure budgets. These show how much an organisation expects to receive and to spend in future periods.Production budgets. These set out how much an organisation must produce in coming periods of time in order to meet demand.Profit budgets. These bring together planned sales, costs, and profit figures. By creating budgets,…