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A budget is a financial plan for a month, quarter, year or even the duration of a project. It is an overall estimation of the revenue and expense over a specified period of time which is compiled and re-evaluated on a period basis. A surplus budget means profits are anticipated, while a balanced budget means that the revenue and expenses are expected to be equal. A deficit budget means expense will be greater than the revenues. The budget enables the management to control the day-to-day activities of the business process. A cost budget is a financial plan which is prepared for every major expense category such as administrative cost, production cost, financing cost etc. An administrative budget deals with the administrative aspect of running a business. Non-production payroll includes sales staff, accounting personnel, managers, clerical staff etc. An administrative budget is the formal breakdown of all planned expenses which allows the managers to make estimations and measure the progress. It is prepared on an annual or quarterly basis. Administrative Cost Budget Assignment Help provides basis of knowledge and a depth idea about administrative cost budget.
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Types of Cost Budget
The different types of cost budget explained in Administrative Cost Budget Assignment Help are: –
- 1. Annual budget: –
An annual budget is that budget which is prepared for a period of 12 months. An annual budget covers both income and expenditure which is expected to be received and paid over the coming year. The various sectors where annual budgets are used are corporations, governments and several other organizations.
- 2. Balanced Budget: –
Balanced budget is type of financial planning or budgeting process where total revenues are equal to or greater than total expenses. After a full years worth of revenue and expenditure are incurred and registered, a budget can be considered balanced. Based on predictions and estimations, a company’s operating budget for the forthcoming year can also be called balanced.
- 3. Performance Budget:-
Performance budget may be defined as a budget which is based on functions, projects and activities. Performance budgeting can be described as a budgeting system, where input costs are related to performance. This type of budget is generally used to showcase the link between funds provided for the benefit of public and benefit of these services.
- 4. Federal budget: –
Federal budget is used to finance a variety of federal expenses ranging from paying federal employees, to dispersing agricultural subsidies, to paying for U.S military equipment. Federal budget is determined annually and predicts the amount which is to be spent on a variety of expense in the upcoming year. It is passed by the Congress and accredited by the President to allot where federal funds are spent. The Details about the different types of budget can be learnt from Administrative Cost Budget Assignment Help.
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