ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Budget analysis is the process of examining cash flowing in and out of your business. The goal is to check if you’re over, under, or within your budget and make any adjustments to stay on track. As a result, you’ll be able to avoid overspending, underspending, and catch any issues with your budget as soon as possible.

Detailed explanation-2: -An example budget report typically follows the same formatting as an income statement. The sales and revenues are listed first followed by the cost of goods sold, selling expenses, general and administrative expenses, other expenses, and finally a net operating income number.

Detailed explanation-3: -Budget analysis is a thorough and detailed review of the budget. It involves the collection, study and interpretation of budget data, the correlation of budget data to other relevant information such as State policies and programmes, and the establishment of findings and results7.

Detailed explanation-4: -Types. There are different types of budget reports, static and flexible being the most common ones. A static budget report is a solid plan in which income and expenses are planned based on a given sales volume only.