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Expense budget planning is an important part of any budget. An expense budget is a list of forecasted expenses within a set amount of time. An expense budget could cover a quarter, an entire year or just a month.
Once the operational objectives are selected, a budget is created, which is an estimate of a cost centerâs cash receipts and expenses for a budget period. The budget guides a cost centerâs use of a companyâs human and material resources to accomplish its assigned objectives. Each company is unique in terms of its financial and operational goals and its cost centers, budgetary processes and cost center budgets.