What is the relationship between profit planning and budgetting

  1. profile image43
    innocent.simangoposted 8 years ago

    What is the relationship between profit planning and budgetting

  2. hafeezrm profile image82
    hafeezrmposted 8 years ago

    Budget is a part of profit planning. Sometimes, the budget is a profit plan.  There are two approaches, one to estimate sales and deduct all costs and expenses, the result being future profit.  The other is to set a profit target and work backward i.e. how much sale level would be required to support so much profit.  This is all budget. 

    But in profit planning we go a step forward and include non-monentrry aspects such as consumer satisfaction, brand loyality, employees' organizational commitment. etc.

 
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