Question

How would I determine a "proposed volume" of a new budget with assumptions?

How would I determine a "proposed volume" of a new budget with assumptions?

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Answer #1

Budget is an assumption that can be prepared before the audit financial available in market. The budget is a type of estimation that can be used for measure of an light estimation regarding to certain assumption in the form of incremental budgeting, activity based budgeting , zero based budgeting,proposed volume budgeting.

Proposed volume budget can be prepared that can create the various assumptions in the budgeter like:

  • Why the particular amount can be included in the budget?
  • Does particular items that can create value for customers,stake holders and staffs?
  • Does that revenue can be differentiated the cost or not?

proposed volume budget making that can sure everything that budget delivers to business.it is proposed to aim reduce unnecessary expenditure but it is not a final budget option.

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