Each budget will have two main sections, and a good manager will come to know each of these sections as intimately as his or her own family.
The first section measures company revenues, or income from sales, investments, and any other sources. You need to match up your expected revenues with your expected expenses, the other main part of the budget.
Say you work for a luxury boat manufacturer. Your company itemizes revenue from the sales of a certain type of speedboat. On the expense side, it then has to make sure the costs involved in building this boat will be less than the revenues it will generate. You don’t want to build speedboats that cost more than people pay for them.