ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Expenses Budgets: Budgets that forecast the expenses which are to be incurred over that set period are expenses budgets. Profit Budget: It is a difference between the above two budgets, i.e., when we subtract the revenue budget from the expenses budget, we get a profit budget.

Detailed explanation-2: -The operating budgets include the budgets for sales, manufacturing costs (materials, labor, and overhead) or merchandise purchases, selling expenses, and general and administrative expenses. The sales budget is the starting point in putting together a comprehensive budget for a business.

Detailed explanation-3: -The master budget has two major categories: the financial budget and the operating budget. The financial budget plans the use of assets and liabilities and results in a projected balance sheet. The operating budget helps plan future revenue and expenses and results in a projected income statement.

Detailed explanation-4: -a cash budget is a plan for the actual money you expect to spend and earn on a daily, weekly, or monthly basis. an operating budget is a plan for how much you expect to spend and earn over a given period of time, usually six months or a year.