Non-monetary budgets

Budgets of this type are expressed in non-financial sales or revenues and expenses. i.e. profit. If the anticipated profit figure is too small. setps may be needed to increase the sales budget or cut the expense budget.

Fixed and variable budgets : Regardless of their purpose. most budgets must account for the three following kinds of costs

(a) Fixed costs : They are the expenses which the organization incurs whether it is in operation or not. Salaries of managers may be an example of such cost. 

(c) Semi-variable costs : They also vary, but in less direct fashion. Costs for advertising, repairs and maintenance. etc. may fall under this category. 

All these categories of cost must be accurately accounted for in developing a budget. Fixed costs are usually the easiest to deal with. Variable costs can also be forecast, although with less precision from projected  operations. Semi-variable costs are the most difficult to predict because they arc likely to vary, but not in direct relation to operations. For these cost-., the manager must often rely on experience and judgment.