Define Budget ? And explain its types.

Budget:- A budget is a detailed plan for future activities prepared in advance. It is a tool used by management for planning future activities.

Types of Budget:-

1. Flexible Budget or Variable Budget:- It is a budget that can be changed as per the time and requirements of business.
2. Fixed Budget or Static Budget:- A static or fixed budget contains elements where expenditures remain unchanged with variable in volume of production and revenues.
3. Raw Material Budget:- This budget decides amount of capital invested for different type of raw material.
4. Production Budget:- This budget decides amount of capitals for different production of an organization.
5. Labour Budget:- Labour budget decides the salaries of different labours of an organizations.
6. Marketing Budget:- This budget decides the amount of production volume for different marketing place.

• Profit and Loss Account:- It is an account prepared in order to know the not profit or not loss made by a business during an accounting period.
• Balance Sheet:- Balance sheet is a yearly recorded informations regarding company and share holders are recorded in diaries in written from yearly than this type of sheet is called Balance Sheet.