Forecasts expected spending on fixed assets during the budgeted period. Capital expenditure forecasting is an ongoing process and by its nature is a long-term function. Capital forecasts should be made for a continuous period rather than for one year. In addition to the long-term forecast, there should also be a short-term forecast. It is also essential that the capital expenditure budget is properly coordinated with all operating budgets of the company so that it forms an integral part of the overall plan. Administrative cost budget. This budget will show the estimated total cost of formulating policy, directing the organization, and controlling the operations of an enterprise that is not directly related to a research, development, manufacturing, distribution, or sales activity or function. Most of the expenses related to administration will be fixed in nature within defined limits and, therefore, the preparation of this budget is relatively simple compared to other functional budgets. Formally, each budget center or department will prepare its own budget which will then be incorporated into the administrative costs