Once the plans are finalized and set, the final step is to convert them into quantifiable parameters through budgeting. Budgets are most commonly expressed in terms of money, but are also expressed as hours worked, as units sold, or in any other measurable unit.
An enterprise usually has overall budgets representing the sum total of income and expenses, with consequent profit or surplus. Each department of the enterprise or organization can have its own budget, commonly of expenses and capital expenditures, which make up the overall budget. A well planned budgeting exercise can become a standard for measuring the progress and effectiveness of the planning process.
