Query - Diff. between budget and projection

What is the difference between Budget and Projection?

 

Replies (1)

Difference between Budget and projectin

Once the financial objectives have been set, it is possible to prepare and agree a budget. A budget should relate the overall plan in figures. It is different from a projection in the sense that the plan, and therefore the budget, sets minimum requirements, whereas a projection is usually an expectation of what is likely to happen.
Example

You might choose to budget for sales of Rs. 180,000 and use this figure in calculating your likely expenditure, profit and so on. Based on your market research, however, you predict sales of Rs..200,000, and set a target of Rs.220,000, in order to stretch your sales force. If all your costs are covered by the budgeted figure, then you will make a greater profit if you achieve the projection and a still greater one if you achieve the target. (Whilst this is an importtant distinction, in practice for most businesses the projection and budget will be the same.)

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details