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Frequently Asked Questions

What are the different types of budgeting methods?

There are different methods adopted for capital budgeting. The traditional methods or non discount methods include: Payback period and Accounting rate of return method. The discounted cash flow method includes the NPV method, profitability index method and IRR.

What is the format of a budget?

Budgets are structured in a variety of ways, each aimed at a specific result. Budget models for home finances focus on income and expenses. While business budgeting is similar, the primary business budget formats include a cash-budget model that sets up a business’ operating scenario, a proposal budget for the purpose...

What is budget format?

Formatting a cash budget is a relatively simple task and is generally done on a quarterly basis. Begin with a cash-on-hand column and design a format that includes cells for cash sales, collections from credit sales and any other inflow of income for the business.

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