Definition of Administrative budget:
An administrative budget is essentially all planned selling, general and administrative (SGA) expenses for a period of time. In an administrative budget, only non-production costs are accounted for, including supervisor payroll, depreciation, amortization, consulting, sales, dues and fees, legal fees and marketing, rent, and insurance. An administrative budget enables management to exercise control of the day-to-day activities of the business.
An administrative budget is an official, detailed financial plan for an upcoming period for a business. An administrative budget is usually prepared on an annual or quarterly basis and identifies the costs of running an operation that is not tied to producing a product or service. This budget includes expenses from non-manufacturing departments, such as sales, marketing, and human resource departments.
Financial allocations through which a management exercises control on the normal, day to day activities of an organization.
How to use Administrative budget in a sentence?
- Administrative budgets are financial plans that include all expected selling, general and administrative expenses for a period. .
- Expenses in an administrative budget include any non-production expenses, such as marketing, rent, insurance, and payroll for non-manufacturing departments. .
- A pitfall of administrative budgets it using past budgets or actual results to prepare the future budget—this perpetuates past spending patterns and should be avoided when possible. .
Meaning of Administrative budget & Administrative budget Definition