Read following passage and answer the question.

Star Ltd has recently entered the segment of manufacturing Electronic vehicles (EV) in India. It has set up a target volume of sales as 20% of total EV market. It has formulated a comprehensive plan taking into consideration the increasing levels of environment pollution and the new legal policies related to it. The company has set up broad parameters within which a manager may function. Apart from this, the company has prepared detailed statements about the EV project which outlines the other types of plans along with the human and physical resources required. The Finance Manager of the company has also prepared a plan which quantifies future facts and figures.

............................referred to as a plan which quantifies future facts and figures.

Budget

The correct answer is option 3 i.e. budget.

A budget is a statement of expected results expressed in numerical terms. It is a plan which quantifies future facts and figures. For example, a sales budget may forecast the sales of different products in each area for a particular month. A budget may also be prepared to show the number of workers required in the factory at peak production times. Since budget represents all items in numbers, it becomes easier to compare actual figures with expected figures and take corrective action subsequently. Thus, a budget is also a control device from which deviations can be taken care of. But making a budget involves forecasting, therefore, it clearly comes under planning. It is a fundamental planning instrument in many organisations.