Budgeting Key Words Flashcards
1
Q
Budget
A
Financial plan for the future concerning the revenues, costs and profits of a business
2
Q
Revenue budget
A
Expected revenues
3
Q
Cost budget
A
Expected variable costs based on sales budget
Expected fixed costs
4
Q
Profit budget
A
Based on the combined sales and cost budgets
5
Q
Variance
A
Involves calculating and investigating the differences between actual results and the budget
6
Q
Positive/ favourable variance
A
Better than expected
7
Q
Adverse/ Unfavourable variance
A
Worse than expected
