Describe at least three different types of budgets?

Answer 1

Depending on the nature of the enterprise, whether profit or nonprofit there can be many specialized budgets to handle a particular need. For example: The revenue budget is designed to plan around the income derived from the activities of the firm. The expense budget is based on the expected costs associated with the production of services or products the company makes. The cash budget is developed to make sure the income and outgo of money will produce the cash needed in the day-to-day operations of the firm. A capital expenditures budget is one where hard assets like buildings, machinery, land, etc. are taken into account in the generation of funds to acquire and sustain such assets. The program budget is geared to the individual programs or goals the company has and takes into account the labor, overhead, financial and other items to make the particular program viable. A zero-based program does not use past derived benchmarks but rather starts out at the beginning or zero income/expenses and figures each step of fixed, variable and all other expenses and revenues as a brand new venture.