"All business plan for sales volumes and revenues, resource quantities, costs and expenses etc."
Identify the concept involved in the above planning and state any two benefits of this type of plan.

Question

"All business plan for sales volumes and revenues, resource quantities, costs and expenses etc."

Identify the concept involved in the above planning and state any two benefits of this type of plan.

Accepted Answer

Budgeting. Budgeting means planning for sales volumes and revenues, resource quantities, costs and expenses of the enterprise. Two benefits: (i) It acts as a road map that helps the entrepreneur set goals and assess the validity of the business concept. (ii) It helps in determining how the business is performing through the years and identifying possible future investments.