Operations and Resources
A budget is a mechanism to plan for the firm’s operations and resources. The operations are reflected in revenues and expenses. This means that a budget should quantify the revenues to be realized from products/services and the expenses to be incurred on goods/services used in generating revenues.
The plan also covers the resources of the firm. The planning of resources means the planning of the various assets and the sources of capital to finance these assets. The assets could be fixed assets as well as current assets.