(Answered) : Business Planning: Budgeting and Breakeven Analysis Budgeting in business is similar to budgeting in your personal life, but

Business Planning: Budgeting and Breakeven Analysis

Budgeting in business is similar to budgeting in your personal life, but it has the added dynamic of variable streams of funds and ever-changing expenses. It does not, however, need to be difficult. In fact, if you spend time building a budgeting model (as will be seen in this chapter), you can have great budgets with minimal time investment.

The Budgeting Process

In accounting, there is a concept called Cost Volume-Profit Analysis. This is an intimidating title that simply means this: when your sales go up or down, some of your expenses will change. If you consider