Budgeting

Question 1

Budgeting is

Answer 1

A financial plan for the future that sets out targets to be met ,costs of achieving them n how spending is financed

Question 2

Budgeting process

Answer 2

New businesses have prob cus no historical data
Make guestimate-throigh recources
They should review over this period.
At end of year 1 they now havs historical data

Question 3

Variance analysis

Answer 3

Uncover reasons behind y u need budget to find trends for success
Checking actual outcomes against predicted outcomes

Question 4

A favoirable budge variance

Answer 4

Actuall revenue thats more or than expected /costs that were less than expected/budgeted

Question 5

An adverse budget

Answer 5

Unfavourable
When budget amount has negative effect on economy .leads to lower profits than planned

Question 6

Calc variances by

Answer 6

Budgeted amount for each item-actual amount spent.

Question 7

Internal source of finance

Answer 7

Finance generated from within the business