Cost and revenue estimate

Cost and revenue estimation (or revenue and expenditures budget) is the first document in the list of the main budget which reflects the operational activities of the company. This document shows the effectiveness of covering operational costs by the income of sales.

When doing cost and revenue estimate the following is taking into consideration: the limits of budget making activities for basic expenditures and for revenue effectiveness; analysis of the possibilities of profit increase; optimization of tax payment; optimization of the return of borrowed funds; built of accumulation and consumption funds.

Cost and revenue estimation is aimed at forecasting of the final cost of the product for a certain period of time with underlining variable and fixed costs, gross, operational, balance and net profit, which is done with the help of the budgeting system bb budget.