Revenue Budget Is An Example Of Which Type Of Budget

Financing businesses for example banks car rentals etc.

Revenue budget is an example of which type of budget. A government budget is an annual financial statement which outlines the estimated government expenditure and expected government receipts or revenues for the forthcoming fiscal year. An operating budget consists of all revenues. A sales budget is an estimate of expected total sales revenue and selling expenses of the firm. Some of types of budgets are.

The expense budget indicates all expected expenses of a firm for the coming year while the revenue budget shows all projected revenues for the coming year. Sales revenue sales revenue is the income received by a company from its sales of goods or the provision of services. Depending on the feasibility of these estimates budgets are of three types balanced budget surplus budget and deficit budget. A financial budget is a very strong determinant of stability of the company and a positive financial budget means good business and healthy organization why the negative financial budget indicates probable issues.

In accounting the terms sales and revenue can be and often are used interchangeably to mean the same thing. I sales budget ii production budget iii financial budget iv overheads budget v personnel budget and vi master budget. Assume that the service that manufacture and sells cars would earn revenue from sale of cars is called as regular revenue. This type of budget is mostly used by the organizations and ministries involved in the developmental activities.

The expense budget and the revenue budget. The financial budget helps to paint the overall picture of the financial health of the company and an overview of it spending in accordance with its revenues from core operations. Revenue expenditure refers to those expenditures which are incurred during normal business operation by the company benefit of which will be received in the same period and the example of which includes rent expenses utility expenses salary expenses insurance expenses commission expenses manufacturing expenses legal expenses postage and printing expenses etc. For example a company sets an output target of 100 million in revenues.

It is just the details of the revenue received by the government through taxes and other sources and the expenditure that is met through it. Revenue does not necessarily mean cash received. Budgeting is the process of forecasting revenues and expenses of the company for a specific time period and examples of which includes sales budget prepared to make projection of the sales of the company and production budget prepared to make projection of the production of the company etc. Their primary revenue is from fees and interest received by customers.