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.
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
3
Q
What are 3 types of budgets?
A
Revenue (Income ) budget
Cost budget
Profit budget
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