Define ‘budget’ and ‘budgetary control’. give a description of two important budgets.

Question: Define ‘budget’ and ‘budgetary control’. give a description of two important budgets. 

Budget is a financial plan that estimates the income and expenditure of an organization for a specific period of time. Budgetary control is the process of comparing the actual results with the budgeted figures and taking corrective actions if there are any deviations. 

Some important budgets are:

- Sales budget: This budget forecasts the expected sales volume and revenue for a given period. It helps in planning the production and marketing activities of the organization.

- Cash budget: This budget estimates the cash inflows and outflows for a given period. It helps in managing the liquidity and solvency of the organization.

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