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Budgeting and Forecasting

What is budgeting?

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March 24, 2013 8:15PM

Budgeting is the process of allocating resources in specific terms to specific items and purposes. It involves details of where resources will come from and how much is expected from each source and the items and purpose it will be spent on and what each item and purpose is expected to consume for the budget year. It also involves built in mechanism of accommodating shortfall in income.