5.2.2. Partial budgeting Vs Complete budgeting

5.2.2. Partial budgeting Vs Complete budgeting

Partial budgeting is used to estimate the costs of and returns from making relatively small changes in the existing farm business, ie, it evaluates first a segment of a whole farm plan. Partial budgeting can be used to analyse the financial implications of enterprise substitution. While considering enterprise substitution in partial budgeting, four important points are to be considered of which two relate to financial gains and the other two relate to financial losses. Complete budgeting is employed to evaluate the financial implications of a proposed plan for a farm as a whole.

Last modified: Thursday, 22 December 2011, 9:02 AM