A budget is an estimation of revenue
over a specified future period of time; it is compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organization or just about anything else that makes and spends money. Among companies and organizations, a budget is an internal tool used by management and is often not required for reporting by external parties.
BREAKING DOWN ‘What is a Budget? Budgeting Terms and Tips’
Basically, a budget is a microeconomic concept that shows the tradeoff made when one good is exchanged for another. In terms of the bottom line – the end result of this tradeoff – a surplus budgetmeans profits are anticipated, a balanced budget means that revenues are expected to equal expenses, and a deficit budget means expenses will exceed revenues.
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