Explain the methods of calculating the partial budget with example
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Oct 28, 2023
A partial budget is a financial analysis tool used in business and agriculture to evaluate the economic impact of a specific change or decision. It focuses on the incremental costs and benefits associated with the change, rather than considering the entire budget. By comparing the additional costs and revenues resulting from the change, a partial budget helps determine whether the decision is financially viable or not. It is particularly useful for evaluating small-scale changes within a larger operation.