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1. Sales Budget:
(a) This budget shows what finished products can be sold in what quantities and at what
prices.(an estimate of future sales)
(b) It may be prepared product wise, region wise, customer wise and period wise.
(c) It is often broken down into both units and currency.

2. Production Budget: It is always based on sales budget. It is generally prepared into two parts:
(a) It shows the estimates in volume or quantities. It estimates the number of units that must be
manufactured to meet the sales goals.
(b) It shows production cost. The production budget also estimates
the various costs involved with manufacturing those units, including labour and material,

3. Capital Budget:
(a) It is generally prepared to estimate the total capital required for acquiring the fixed assets for
fulfilling the production demand of an organisation.
(b) Long term investments such as new machinery, replacement machinery, new plants, new
products, and research development projects are worth pursuing. Capital required for
developing research and development should be totally different from the work of
manufacturing unit.
(c) The capital budget helps you figure out how much money you need to put in place of new
equipment or procedures to launch new products or increase production or services.
(d) This budget estimates the value of capital purchases you need for your business to grow and
increase revenues.

4. Cash Flow/Cash Budget/Financial Budget:
(a) It is one of the important budgets because success of any business totally depends upon the
cash flow management and liquidity.
(b) It gives a prediction of future cash receipts and expenditures for a particular time period. A
cash flow budget details the amount of cash you collect and pay out.
(c) It usually covers a period in the short term future.
(d) It helps the business determine when income will be sufficient to cover expenses and when
the company will need to seek outside financing.
(e) It makes a provision for minimum cash balance which will be available at all times.