BUDGETING AND PROFIT PLANNING
Budgets are an important tool of profit planning. The purpose of this chapter is to present a general view of budgeting as a device of planning and illustrate the preparation of various types of budgets. Section 1 of the chapter provides a brief account of the planning process vis-a-vis budgeting. Section 2 elaborates on the meaning of a budget and the purpose of budgeting. The important types of budgets are discussed and illustrated in Section 3. The major points are summarized in the last Section.