budgeting and budgetary control

Question 1

what does budgeting mean?

Answer 1

setting a budget

Question 2

what does budgetary control mean?

Answer 2

checking performance against a plan to make sure that targets are met and are within budget

Question 3

budgeting:
what does setting a budget involve?

Answer 3

setting and agreeing the sales revenue targets and expenditure items to make a profit

Question 4

budgetary control:
what are the 3 steps in controlling the budget to keep it on track?

Answer 4

1. checking monthly sales levels
2. checking monthly spending
3. taking immediate action if sales are too low or spending is too high

Question 5

checking sales levels:
what must actual revenue be compared with?

Answer 5

predicted revenue

Question 6

checking sales levels:
when should action be done?

Answer 6

by increasing sales if they are too low
this should be done without any additional spending

Question 7

checking spending levels:
what must actual spending be compared regularly with?

Answer 7

predicted spending

Question 8

checking spending levels:
what should be reduced?

Answer 8

rising costs

Question 9

checking spending levels:
what should be investigated?

Answer 9

if there is regular overspending

Question 10

sales and spending levels:
what are the 3 things that sales and spending levels in a budget be?

Answer 10

achievable
appropriate
realistic

Question 11

sales and spending levels:
why might an enterprise need amending?

Answer 11

if sales/spending are too high or too low