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The only relevant test of the validity of a hypothesis is comparison of prediction with experience.

Milton Friedman, economist

The above brilliant words from American economist Milton Friedman suggest that a plan should be monitored to see what actually happens. Businesses plan regularly, so now that you know about costs from Chapter 8, in this chapter you’ll learn how to plan for future costs and revenues. First, you’ll learn what a budget is and how to prepare various budgets for a business. I’ll then give you a brief summary of how the ...

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