Characteristics Of Budget :

Budget has the following important characteristics

1. It is prepared in advance and relates to a future period.

2. It is expressed in terms of money and/or physical units.

3. It is a mean to achieve the planned objective.

In business, the different kinds of budgets are prepared to facilitate different aspects of the business concern. Such aspects relate to sales, purchases, production, overheads as well as financing of the business. One of the main budgets prepared by a business concern is Cash Budget.