D.6 What does the buget contain?
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Budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resourbudgetce quantities, costs and expenses, assets, liabilities and cash flows.
The federal budget comprises three primary components: revenues, discretionary spending, and direct spending.
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The primary components of a budget are sales revenue, fixed costs, variable costs and profit. Estimating sales revenue allows you to see the level of costs that your business can support. It is then a matter of making the tough decisions about what costs you can forgo in order to generate a reasonable profit.
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