Question

What do you mean by budget?Why is it important for any organization?

Answer 1

budget means to estimate of income on expenditure in set of period

Answer 2

Answer:

Budget is the estimation point about the money to spend a certain sum of money on an available combination of product to satisfy the needs and wants. Whereas, Budgeting is a process of making a plan on How to When to, and How much to spend money.

Through budgeting plan, a firm can make a plan that gives a clear outlet to the frim on the money matter. It helps to channel the funds most efficiently.

It's important for a firm to -

Opt the best way of acquisitions of the funds.

Proper channels of funds to meet financial needs.

To create awareness about the financial needs of the firm as a whole.

Help to establish the financial condition of the firm.