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    Thread: What are components of a budget?

    1. #11
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      Quote Originally Posted by DCO     
      What are the things that make up a budget?
      A budget consist of some key components these components are :
      1- Income component : which include all gains that a business earned it such as earnings from sales, investments, ... etc .
      2- Expense Component : which include all expenses that a business spend it such as production costs, utilities bills, labor, ... etc .
      3- Overhead and production costs : which include production costs such as extra energy or labor and machinery, materials and also include non-production costs ( overhead ) such as marketing, advertising, phones, office and general and administrative costs .
      4- Net income or loss : which include total income and total expense and the difference between them to show us the net income or loss .
      5- The projection totals column : which shows us how a business will end the year if it continue performing at the current level of income and spending .


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      Without a budget it's difficult to have a good solid financial progress.
      As an individual or an organization, having budget it extremely important.

      A good budget outlines our priorities, but it also helps us set some money aside so that we can achieve our long-term financial goals.
      A basic importance of a budget is the income, we can only budget on income as a business or individual.

      Savings : out of income, sometimes it's important to save on incomes, and this is a significant aspect of budgeting.


      Expenses: how much that is need for each needs also have to be segmented aside based on their utility, so as to avoid purchasing unnecessary things.


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