accordingly. A delay in this may lead to glitches later on that might trigger confusion. Budgets are always prepared on certain assumptions. Those assumptions could possibly be associated to the sales tendencies, cost developments or environmental conditions. Before embarking on making ready the budget, these assumptions have to be totally reviewed based on the current environmental circumstances. 3. SG&A prices are incurred so as to conduct the day to day operations of a business. They encompass mounted and variable costs. 2.