16. Using Budgets Flashcards
1
Q
Cost centre
A
A section of a business which involves expenses
2
Q
Profit centre
A
A section of a business which incurs expenses and generates revenue do that the profit can be calculated and sets a profit budget.
3
Q
Delegates budget.
A
Given to a specific manager to manage and control.
4
Q
Variance
A
Difference between the budgeted figure and the actual figure
5
Q
Variance analysis
A
Comparison of businesses performance with budgeted performance.
6
Q
Favourable
A
When variance leads to higher than expected profits.
7
Q
Adverse
A
When variance leads to lower than expected profit.
8
Q
Expenditure budget
A
A plan of the future expenses of a business
