A budget is the financial blueprint or action plan for an organization, division, business unit, or department. It translates strategic plans into measurable expenditures and anticipated returns over a period of time. … Continue Reading Budget for business or organization
First, we need to understand that Capital budgeting is not the same as a capital budget. Rather, it’s the process of identifying the potential return on a given investment (ROI) in … Continue Reading Understanding capital budgeting techniques
Cost of capital is the cost of the funds used to finance a business. The cost of capital would depends on the method of financing used relative to the company financial … Continue Reading Understanding the cost of capital
A capital budget shows a group’s or organization’s planned investments in capital assets (the spent budget then known as CAPEX, Capital expense). Organizations generally acquire capital assets to help generate … Continue Reading What are capital assets?
Selling, general, and administrative (SG&A) costs are additional costs beyond those cost which directly associated with producing a product or service. SG&A can include costs related to: Research and development … Continue Reading Estimating Selling, general, and administrative (SG&A) costs
The cost of goods sold (COGS) is an expense calculated by companies that make tangible products they must hold in inventory, such as manufacturers. COGS includes: Materials Labor Other direct … Continue Reading Forecasting cost of goods sold (COGS)
Typically, cost can be divide into fixed and variable cost as well as cost overhead. Fixed costs Fixed costs remain fairly constant in your business operation, regardless of production or sales … Continue Reading Types of costs to be included in your business budget
A business budget functions as financial blueprint or action plan that a group or organization creates to ensure it has enough resources to achieve its desired goals. The budget also … Continue Reading Why your business budgets matter?
A budget estimates expected revenues and expenses for a given future period while a financial forecast projects an actual outcome, such as quarterly revenues, based on historical data or projected … Continue Reading What’s the difference between budget & forecast?
A budget is a document that translates a group’s or organization’s strategic and operational plans into the expected resources required and returns anticipated over a certain period. There are many types of … Continue Reading What is a budget for business?