Types of Budgets
Types of Budgets FAQ
1. What is a production budget?
A budget estimating the number of units to be produced to meet sales and inventory needs.
2. What is a labor budget?
It estimates the cost and availability of labor required for production.
3. What is a capital expenditure budget?
A plan for investments in fixed assets like machinery, buildings, and equipment.
4. What is a sales budget?
A financial plan for expected sales in both units and revenue.
5. What is a marketing budget?
It outlines the amount to be spent on marketing activities over a specified period.
6. What is an expense budget?
It predicts the company’s operating expenses like rent, salaries, utilities, etc.
7. What is a project budget?
A detailed budget specific to a particular project, estimating costs and expected revenue.
8. What is an activity-based budget?
A budget that allocates costs based on activities that drive costs rather than departments.
9. What is a performance budget?
A budget tied to the performance or outcomes of an organization, used mainly in the public sector.
10. What is a static budget?
A budget that doesn’t change over time, even if actual activity levels differ from planned levels.