This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
A Budget is the expectations of Sales, Costs & Expenses and Profit for a future fiscal period (month, quarter, year).
This is definitely a What do you mean by that? term. Many people use it to mean ‘the amount of money they are allowed to spend’, meaning only ‘their’ costs/expenses portion of the actual budget.
A Target is a specific objective or goal that a business, or organization aims to achieve: sales revenue, a level of customer service, market share.
A Budget is a detailed plan outlining expected income and expenditure over a set period, often as a means of achieving a specific target.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.