CHARACTERISTICS OF BUDGET

CHARACTERISTICS OF BUDGET
The main characteristics of budget are as follows:

1. A budget is concerned for a definite future period.

1. A budget is a written document.

2. A budget is a detailed plan of all the economic activities of a business.

3. All the departments of a business unit co-operate for the preparation of a business budget.

4. Budget is a mean to achieve business and it is not an end in itself.

5. Budget needs to be updated, corrected and controlled every time when circumstances change. Therefore, it is a continuous process.

6. Budget helps in planning, coordination and control.

7. Different types of budgets are prepared by industries according to business requirements.

8. A budget acts a business barometer.

9. Budget is usually prepared in the light of past experiences.

10. Budget is a constant endeavour of the Management.