Budget

Budget 

Defination : A budget is the monetary or and quantitative expansion of business plans and policies to be pursued in the future period of time. The term budgeting is used for preparing budgets and other procedures for planning.

According  to I.C.W.A London  “A Budget is a financial and  or quantitative statement prepared prior to a defined period of time , for attaining a given objective.

Budget portrays the intentions of Management  about future plays … it indicates sales to be made, the expenses to be incurred, and the profit or income to be received.

A budget is the monetary or and quantitative expansion of business plans and policies to be pursued in the future period of time. The term budgeting is used for preparing budgets and other procedures for planning.
A budget is the monetary or and quantitative expansion of business plans and policies to be pursued in the future period of time. The term budgeting is used for preparing budgets and other procedures for planning.

Importance Of Budget

It is difficult to overstate the importance of a meaningful budgeting process for a hotel. Ultimately the budget represents the
implementation of the Owners and Operators vision for the hotel. It the means by which the Owners and the operators achieve the qualitative goals we associate with the brand or style of the hotel and the quantitative goals of achieving a well-run , efficient and profitable business. Moreover, it is often used as a means to judge the performance of the operator.

Classification on basis of time

1. Long-term Budgets
2. Short-term Budgets.
3. Current- Budgets

On the basis of functions
1. Functional or subsidiary Budgets
2. Master Budget

On the basis of flexibility
1. Fixed Budget
2. Flexibility

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