Budget

5 primary purposes ;

1. Planning; to quantify a plan of action.
2. Facilitating communication and coordination.
3. Allocating resources.
4. Controlling profit and operations.
5. Evaluating performance and providing incentives.

Types of budget;

1. A master budget or profit plan.
2. Budgeted financial statements or pro forma financial statements.
3. Capital budget.
4. Financial budget.
5. Rolling budget or revolving budgets or continuous budgets.