budgeting Flashcards
1
Q
define budgeting
A
financial plan for the future operations , set over certain time period
2
Q
whats the purpose?
A
to set targets
monitor performance
control operations
3
Q
types of budgeting
A
income- estimation of expected sales
expenditure- calculated estimate of future expenses
profit- profit expected based on budgeted levels
4
Q
define historical budgeting
A
last years figures used as basis for budget
5
Q
define zero budgeting
A
all budgeted incomes and expenditure are set to zero
