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What is Bugdet?

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Anonymous

14y ago
Updated: 9/20/2023

A budget is an amount of money allocated to a specific task, department or item. In example, the marketing budget for the first quarter of the financial year is $500,000. The actual marketing cost for the first quarter of the financial year was $450,000; therefore when comparing the budget to the actual cost, you find that the marketing department operated at $50,000 favourable for the first quarter.

Budgets allocate money, but in comparison to the actual costs incurred, they can also be used as a monitoring and measuring tool for effectiveness and efficiency of the department.

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Rylan Ratke

Lvl 13
3y ago

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