Budgeting Flashcards

1
Q

What is a budget?

A

A financial plan of action over time that includes parts of the business such as revenue , costs and profits.

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2
Q

What are the uses of budgeting ?

A

Set targets
Allocate resources(Efficiency )
Assign responsibility
Job delegation without loss of control
Motivate staff
Monitor performance

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3
Q

What are 3 types of budgets?

A

Revenue (Income ) budget
Cost budget
Profit budget

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4
Q

What are the pros and cons of budgeting?

A

PROS:
Motivate staff
Clear sense of direction
Financial rewards

CONS:
Demotivate staff
High quality- data needed
Time-costly
External factors

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