Budget Flashcards
1
Q
What is the definition of a budget?
A
A budget is a short term plan prepared by a business.
2
Q
What is the name of the person who has responsibility for a budget?
A
Budget holder.
3
Q
What is sales revenue?
A
Money made from selling the products.
4
Q
How is sales revenue worked out?
A
quantity sold x price of product.
5
Q
What are fixed costs?
A
Costs that don’t change with output.
6
Q
what are variable costs?
A
Costs that change with output.
7
Q
What is budgeting?
A
Planning future expenditure and revenue targets with the aim of ensuring a profit is made.
8
Q
What is budgetary control?
A
The process of checking what is actually happening, comparing this with the plan and taking action if things are not correct.
