Answer / dattatraya

Budgeting refers to the planning.
Normally for the following reason budgeting is need in the
business for:-
1. Purchase new assets
2. Selling old assets and purchasing new assets
3. Choosing better option whether to purchase assets
directly or to take the smae on lease.
4. choosing better option whether repair the old assets or
sale the old assets and purchase the new one.
5. Choosing better opting in which area new business to be
set up. It consist of comparision between two or more
option by facility wise, transportaion wise, avaliability
of tranportation wise, government subsidies, government
discount is taxation(i.e. zeo tax where business set up in
SEZ).

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