expenditure and revenue budgets Flashcards
what are the different components that enterprises consider?
when setting and controlling their budget
what happens when an enterprise usually have high levels of spending when they set up?
make no profit until the point at which the revenue more than covers the spending and profit is made
types of expenditure: capital expenditure
what is a capital expenditure?
the spending on assets
types of expenditure: capital expenditure
what are 6 examples of capital expenditure?
land, buildings, furnishings, fixtures and fittings, and vehicles
types of expenditure: capital expenditure
why are the examples large outgoing?
which are not usually undertaken on a regular basis and are less frequent
types of expenditure: labour
who are the labours?
the people (workers) who are directly or indirectly involved in making and delivering an enterprise’s products and services
types of expenditure: labour
how do you calculate the labour spending?
the rates of pay and the time spent are multiplied together
types of expenditure: labour
what is the labour spending of ten workers work for one whole day (8 hours) for £10 per hour?
8 hours X £10 x 10 workers = £800
types of expenditure: purchases, production, promotion
why does spending occur?
to make the products or provide the services
types of expenditure: purchases, production, promotion:
why does spending occur so that customers are aware? (3)
purchasing materials
producing the goods
marketing them
types of expenditure: purchases, production, promotion:
what are regular and frequent expenses?
costs directly involved in making and delivering the product and service
types of expenditure: overheads
what are overheads?
costs that are not directly involved in making and delivering the product or service
types of expenditure: overheads
what are 5 examples of overheads?
spending on insurance, rent, repairs, utilities, travel
what is the cash in budget usually prepared in?
prepared in advance
what does the cash in a budget show?
the planned incomings
outgoings
