Key terms (2.2.4) Flashcards
1
Q
Adverse definition
A
negative variance e.g higher costs than budget
2
Q
Budget definition
A
a financial plan of income and expenditure prepared/agreed in advance
3
Q
Favourable variance definition
A
positive variance e.g lower costs than budget
4
Q
Historical budgeting definition
A
a budget based upon previous financial figures
5
Q
Variance analysis definition
A
shows that the difference between budgeted and actual figures and can be calculated at the end of a financial period once actual figures are known
6
Q
Zero based budget definition
A
a type of budget where no money is allocated for spending unless it has firstly been justified
