1) A budget which, by recognising the difference in behaviour between fixed and variable costs in relation to fluctuations in output, turnover or other factors, is designed to change appropriately with such fluctuations.
3) A plan quantified in monetary terms in advance of a defined time period and usually showing planned income and expenditure and the capital employed to achieve a given objective.
4) A mathematical method of calculating the amount of stock that should be ordered at a time and how frequently to order it, so that the overall total of the costs of holding the stock and the costs of ordering the stock can be minimised.
