What do you mean by Budget ? Explain any four types of budgets which are used in business.

Answer -The four types are: a cash budget forecasts cash receipts, payments and the resulting balance; a sales budget estimates sales quantities and revenue; a production budget specifies output needed to meet expected sales and inventory requirements; an expenditure budget estimates planned spending for a period.

Budget: Numerical statement of expected results; a cash, sales, production or expenditure budget.