Purchase Budget

A purchase budget is an estimate of the total cost of goods and services a company plans to acquire over a specific period, serving as a tracking tool for actual spending compared to forecasted costs, often broken down by categories like raw materials, office supplies, and marketing expenses.

A purchase budget is an estimate of the total cost of all goods and services that a company plans to acquire over a specific period, similar to a shopping list for a business.

It helps track actual spending against forecasted costs and may include a breakdown by category, such as raw materials, office supplies, and marketing expenses.

By using this budget, businesses can make informed decisions, negotiate better deals with suppliers, and ensure they stay within their financial limits while purchasing what they need.