Types of Budget - Budgetary Control, Cost Management Video Lecture | Cost Management - B Com

types of budget budget can be prepared
for any event for example a birthday
party a picnic or a sports competition
to name a few a budget can be a personal
budget a family budget or a budget for
business entity there could also be a
separate budget for company startup
sales production cash flow marketing and
project in case of a business fun a
budget can be basically classified on
the basis of the levels of income and
expenditure reflecting in a budget they
are first deficit budget
second surplus budget and third balanced
budget
deficit budget when total income is less
than total expenditure in such a
situation the resultant is a deficit
budget in such a situation
people generally bank on previous
savings to meet current needs sometimes
they also did loan for meeting current
expenditure such a case may arise due to
uncertainties like sickness accident
family functions from a family
perspective or due to changes in market
trends competitors strategies and
strikes or disputes in case of a
business
surplus budget when total income is more
than total expenditure the resultant is
a surplus budget in such a situation
people generally add a part of the
surplus funds to their existing savings
they may also invest surplus funds lying
with their purchase of much awaited
goods and services may take place in
such a scenario such a case is outcome
of perfect implementation of a previous
budget
balanced budget balanced budget is a
case when total income and total
expenditure are identical it helps to
maintain the balance between income and
expenditure here are a few examples of
different kinds of budget
to summarize the word budget is derived
from the French word baguette meaning a
small bag containing financial proposals
budget is constructed as a model to
forecast how a specific family or
business might perform financially if
certain strategies events and plans are
carried out it predicts financial
performance and compares it with actual
performance of an entity every budget
always has two components receipts which
contains all sources of income and
expenditure which contains all means of
spending there are three basic types of
budget namely deficit budget surplus
budget and balanced budget