· Is a predetermined statement of a

· Is a predetermined statement of a company’s objectives during a period of time.
·The budget is like a plan which guides the managers who are responsible for achieving certain business objectives.
·The budget normally has an overall or master budget which is made up of sectional/subsidiary budgets prepared by the different sections in the company.
· Be careful that a budget is a plan but a forecast is merely a prediction of what will happen as a result of a given set of circumstances.