Budgets are used within a business as a tool to allow to company to allocate financies to specific areas or project within the business. This process is building block tool that is used to compare planned cost against actual expenditure, this should provide a full description of what the planned outcome might be, this should include brought items, labour cost and any third party intervention that is required. By analising all this a company will be able to allocate all of resources to specific areas that are needed. this budget will also allow the company to compare estimates with actual results. When there is a major difference between the actual and the estimated projection costs they company will then have to take action and then explain
