We may have heard the word "budget" in our day to day operations but have we ever made an effort to understand what this means? Hell, No!!
But Why? May be because we assume that we know what budget means and it is simply a communication of amount of money we have been granted to spend in a specific period.
Unfortunately we are wrong. Budget is a quantitative/financial plan relating to the future.
How Long - There is no such standard but generally organizations stick to one year or less.Why an Organization Need a Budget?
Budget Period - The time for which a budget is prepared. Generally 1 Yr
Budget Interval - For control easiness budget period can be sub-divided (split) into smaller, more controllable time periods. These are budget intervals.
Purindu B Jayatilake
MSc Eng (Reading), MBA, BSc (Hons) Eng, ACMA (UK), CGMA
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