3.9 Budgets (HL only)

Question 1

Budget

Answer 1

A plan of the costs and revenues with the purpose of achieving the objectives of a business in a given time period.

Question 2

Cost centre

Answer 2

Responsible and held accountable for its own costs.

Question 3

Profit centre

Answer 3

Responsible and held accountable for both its own costs and revenues, and hence the resulting profits.