budgets Flashcards
1
Q
what are the difficulties constructing budgets
A
difficult to forecast sales accurately
risk of unexpected changes
external factors
2
Q
what is variance analysis
A
process of investigating any differences between forecast data and actual data
3
Q
what is adverse and favouorable
A
adverse means you over predicted
favourable means u underpredicted
4
Q
advantages of budgetting
A
aims to control finances affectivly
allows you to not overspend
budgets can motivate staff
