A.

BUDGET STAGES
1. FORMULATION STAGE
 It is usually a set of number of month before the beginning of the fiscal year for the
budget.
 One of the first step in writing a budget is gathering data for accurate prediction of
expenses and revenue (income).
2. REVIEW AND ENACTMENT
 Review and enactment stage are budget development process that pull all the
pieces to get her for approved of final budget.
 One of the cost center managers present their budget to the council, the chief
executive officer will consolidate the budget.
 The chief of the organization and the governing board will give their approval.
 Throughout the process, conferences will be held at which budgets are made.
3. EXECUTION STAGE
 Execution of the budget involves Directing, Executing, and Evaluating of activities.
 The Administrators and Managers who planned the budgets execute it. Revisions in
execution of budgets are scheduled at stated intervals, frequently once or twice
during the fiscal year.
 Certain procedures are followed for evaluating the budget at cost center levels.
 A business expenditure is any fixed or variable cost that a company pays to
conduct its operations. Fixed costs remain the same regardless of fluctuations in the
business such as sales increases or declines. Facility leases, licensing fees and
liability insurance are examples of fixed costs, which may fluctuate over time but
not as a result of business behavior. Variable costs, on the other hand, are
influenced by the company’s performance. For example, increased sales may mean
more product output that requires additional expenditure for materials,
warehousing and logistics. Expenses tied to payroll, marketing and technology are
generally fixed but can be variable when business volume significantly changes in
either direction.
 An expenditure budget helps businesses track purchases and limit operating costs
to the lowest possible amount. Through careful planning and analysis, managers
can coordinate expenditures with tax strategies and cash flows. Without
expenditure budgets, managers run the risk of overspending and reducing or
eliminating profit margins.
 Once an expenditure budget is established, the company has an idea of the total
revenue it needs to maintain or grow the business -- information essential to
formulating effective business goals and operational plans. The budget should be
evaluated regularly against actual business activity financials to ensure alignment
and help identify potential spending issues, cash flow gaps, savings opportunities
or future profit scenarios.
https://bizfluent.com/info-7749442-expenditure-budget.html
https://smallbusiness.chron.com/expenditure-budget-
80151.html#:~:text=An%20expenditure%20budget%20helps%20businesses,to%2
0the%20lowest%20possible%20amount.&text=Without%20expenditure%20budge
ts%2C%20managers%20run,reducing%20or%20eliminating%20profit%20margin
s.
https://www.slideshare.net/pramodkumarsikarawar/budget-66501454
http://www.tradeready.ca/2019/topics/international-trade-finance/6-factors-that-
can-significantly-affect-your-business-costs/