MEANING OF BUDGET AND BUDGETING


Meaning of Budget and Budgeting
Budget : CIMA Official Terminology has defined the terms ‘budget’ as “Quantitative expression of aplan for a defined period of time. It may include planned sales volumes and revenues; resource quantities, costs and expenses; assets, liabilities and cash flows.”

Budgeting : It is a means of coordinating the combined intelligence of an entire organisation into a plan of action based on past performance and governed by rational judgment of factors that will influence the course of business in the future.

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