ECONOMICS

Detailed explanation-1: -budgeting. the process of planning future business actions and expressing them as formal plans.

Detailed explanation-2: -Budgeting refers to projecting the revenues and costs of the company for the future specific period that the business wants to achieve. In contrast, forecasting refers to estimating what actually will be achieved by the company.

Detailed explanation-3: -Budgetary planning is the process of constructing a budget and then utilizing it to control the operations of a business. The purpose of budgetary planning is to mitigate the risk that an organization’s financial results will be worse than expected.

Detailed explanation-4: -A business budget is a spending plan for your business based on your income and expenses. It identifies your available capital, estimates your spending, and helps you predict revenue. A budget can help you plan your business activities and can act as a yardstick for setting up financial goals.

Detailed explanation-5: -Profit Planning and Budgeting: • Profit plan is the steps taken by the business to achieve their planned levels of. profits. • Budget is a quantitative plan for acquiring and using resources over a specific time. period to achieve its goals and objectives.