What a budget is for
A budget is a plan for the months ahead, written in money. See what it is used for and build a simple one.
Task 1A plan in money4 questions
A budget is a plan for a future period, written in money. It is agreed before the period starts.
- Planning
- it makes the owner think ahead about sales and costs
- Co-ordination
- every part of the business works to the same plan
- Authorisation
- it sets how much each manager may spend
- Control
- actual results are compared with it, and the differences are looked into
The person responsible for one part of the budget is its budget holder.
Task 2Build a simple budget4 questions