Budgets are prepared in financial terms, that is, in terms of monetary value such as the rupee dollar, and so on. The reason is that the monetary unit is a common denominator. The various activities and operations arc expressed in different units, for example, material in terms of weight labor in terms of number/man-hours, sales in terms of territories, advertisement in terms magazine space, and so on. If they have to be integrated in a plan, they must be expressed comparable units of measurement. Monetary units provide such a measure.