Budgeting Flashcards
1
Q
Budgeting
A
plan for the future concerning revenues & costs expected over time
2
Q
Variance analysis
A
Calculating the difference between actual results & budgeted
3
Q
2 versions of analysis
A
Favourable, adverse
4
Q
Causes for favourable variances
A
Stronger demand than expected, selling price increased, cautious sales & cost assumption
5
Q
Causes of adverse variances
A
Unexpected events, overspending, sales forecast shows to be too optimistic
