BUDGETING WEEK 8 Flashcards
1
Q
types of budgets
A
periodic (prepared for a set length of time, becomes a one-off exercise planned into a business cycle)
continual or rolling (continually updated, may be broken down into monthly periods)
2
Q
budgeted income statement /balance sheet
A
overall picture of planned performance for the budget period
3
Q
sales budget
A
predicts total rev
4
Q
production plan &cost of production
A
estimated opening inventory + no of units sold +desired closing inventory
5
Q
cash budget/closing cash
A
opening cash+ receipts - payments
6
Q
sales variance
A
budgeted sales rev-actual sales rev, favourable or unfavourable
7
Q
sales volume variance
A
total variance caused by just volume
(actual volume-budgeted volume) x budgeted sale price
