budget

A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Companies, governments, families and other organizations use it to express strategic plans of activities or events in measurable terms.

A budget is the sum of finances allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them. It may include a budget surplus, providing money for use at a future time, or a deficit in which expenses exceed income.

A budget (derived from the old French word meaning purse) is a quantified financial plan for a forthcoming accounting period.

A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.

In summary, the purpose of budgeting tools is to:

1. Provide a forecast of revenues and expenditures. This is achieved by constructing a model of how a business might perform financially if certain strategies, events, and plans are carried out.
2. Enable the actual financial operation of the business to be measured against the forecast.
3. Establish the cost constraint for a project, program, or operation.

The budget of a company is often compiled annually, but may not be a finished budget, usually requiring considerable effort, is a plan for the short-term future, typically allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget.

The budget of a government is a summary or plan of the intended revenues and expenditures of that government. There are three types of government budget = the operating or current budget, the capital or investment budget, and the cash or cash flow budget.

六级/考研单词: seldom, expense, allocate, summary, surplus, deficit, derive, wallet, quantify, forthcoming, forecast, construct, compile, invest