Types Of Budget
There are three types of budget: business budget, special decision budget and finance. budget 。
(1) business budget
Business budget is the foundation, which mainly includes sales budgets, production budgets, direct materials and procurement budgets, direct labor budgets, manufacturing cost budgets, product cost budgets, final inventory estimates, sales and management budgets, which are directly related to the day-to-day business of enterprises.
The sales budget is the starting point of the business budget.
(two) special decision budgets
Budgetary decision making refers to the budgets made by enterprises for one-off business activities that do not occur frequently in the budget period.
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These include: capital expenditure budgets related to purchase, renewal, pformation and expansion of fixed assets decisions based on long-term investment decisions, and budgets related to resource development, product pformation and trial production of new products.
(three) financial budget
The financial budget mainly reflects the budgetary cash receipts and payments, the operating results and the financial situation of the enterprise, including the cash budget, the estimated profit statement and the budget. Estimate Balance sheet. The financial budget is compiled from the business budget and the special decision budget, and it is the main body of the whole budget system.
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