Budgeting

Budget for business or organization

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. Organizations use different types of budgets for different purposes: An operating… Read More ›

Understanding the cost of capital

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 standing. Most companies use a combination of debt (such as… Read More ›

What are capital assets?

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 profit or, if they are a nonprofit, to achieve their… Read More ›

Forecasting cost of goods sold (COGS)

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 product costs Manufacturing overhead A COGS estimate is based on… Read More ›

Why your business budgets matter?

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 helps ensure that achieving those goals generates the desired benefits…. Read More ›