ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Budgeting provides a guide for efficient business decisions. Gross income is income after the cost of goods and taxes are deducted.

Detailed explanation-2: -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-3: -Budgets play a role in planning, controlling and evaluating. The business will develop strategies and plans to help them achieve these goals. Budgeting helps businesses consider the costs of their strategies and plans (over both the short and longer term).

Detailed explanation-4: -But what exactly is budgeting? It’s a proactive approach to organizing your finances. Budgeting ensures you’re not spending more than you’re making, allowing you to plan for short-and long-term expenses. It’s an easy, helpful way for people with all types of income and expenses to keep their finances in order.