Budget Types

Sales budget – an estimate of future sales, often broken down into both units and currency. It is used to create company sales goals.

Production budget - an estimate of the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material.

Capital budget – used to determine whether an organızatıon’s long-term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing.

Cash flow/cash budget – a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short – term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company wil need to seek outside financing.

•Marketing budget – an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.

 Project budget – a prediction of the costs associated with a particular company project.

These costs include labour, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. A cost estimate is used

to establish a project budget.

Revenue budget – consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government

levies.

Expenditure budget – includes spending data items.

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