budgeting Flashcards
1
Q
Budgeting
A
Financial plans for the future over a given period of time that describes the expected levels of expenditure and revenues.
2
Q
Sales Revenue Budgets
A
set out a business’ planned revenue from selling its products.
3
Q
Expenditure Budgets
A
sets out a business’ planned expenditure- raw materials, labour, fixed/ variable costs
3
Q
Budgetary Control: Variances
A
An unplanned change from the budget figured.
4
Q
Zero Budgets
A
Starting with a clean sheet-Justifying all the expenditure made.
Helps with:
*improves control
* allocation of resources
*reduce unnecessary costs
5
Q
Favourable Variance
A
*expenditure is less than expected
* revenues are higher than expected
6
Q
Adverse Variance
A
*expenditure is higher than expected
*revenue is lower than expected
