What Are The Objectives Of Budget?


4 Answers

Joe Gilbert Profile
Joe Gilbert answered
Regardless of the type of budget, there are commonalities amongst them all.  A budget is designed to Eliminate Debt, Increase Profit or Savings, Increase efficiency, Clarify priorities and allocates resources effectively. 

Having a good budget in place can help you to keep from getting into debt; being in debt will certainly highlight the importance of a budget. Throughout the process of creating a budget you will look for ways to reduce the outflow of money. Once excess is reduced and the outflow is less than or equal to the income, you can start paying down debt or accumulating profit.

As you map out your current expenditures, you may see that there is duplication of spending or resources. Trimming that waste will help your bottom line and it will help you pinpoint specific tasks that can be streamlined, increasing efficiency in the environment you are budgeting. Duplication of effort or undertaking meaningless tasks takes a toll on any bottom line. 

You have a long wish list but your budget and the reality of cash flow will determine what realistic cuts or expenditures will help you attain your financial freedom. An effective budget requires having a good idea where you want your household, business or agency to be in the future. You can focus your priorities by starting with your initial expenditure list and trimming it based on actual cash flow.  This allows a clear picture of your current situation.

Allocating funds is the main objective of any budget. This looks at your income and decides where the money will be best spent. Expenditures that help you achieve your goals will get the larger portion of your funds, while lower priority items are allocated smaller portions.

Budgets are a great thing to have a grasp of early in life.  Many who did not have a firm grasp have struggled in live.  Make your life easier, always have a solid budget, be it personal or business.
Lily James Profile
Lily James answered

A Budget is basically a list of all the planned expenses as well as sources of revenues. It is a plan for saving as well as spending. It is an important concept from microeconomics.

The Budget has the following key purpose:

- It helps in planning the savings as well as spending for the future.

- It provides a forecast of revenues as well as expenditures.

- It enables measurement of the actual financial operations of a business against the forecasts.
Anonymous Profile
Anonymous answered
Yes, in nursing homes budgets are money allocated for a specific activities.
Such expenditures are made to accomplish facility goals or purposes; such as resident's activities, marketing, employee's festivities or building maintenance.
Anonymous Profile
Anonymous answered
What is d guarantee that d ans provided by every users will b correct only?
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