Key Terms - Theme 2 (Budgets) Flashcards

1
Q

Budget

A

A financial business plan for the future concerning the revenues and expenditure of a business

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2
Q

Budgetary control

A

A business system that involves making future plans, comparing the actual results with the planned results and then investigating the cause of any differences

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3
Q

Historical figures

A

Quantitative figures based on past trading records

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4
Q

Production cost budget

A

A firms planned production costs for a future time period

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5
Q

Sales budget

A

A firms planned sales for a future period of time - can be measured in terms of volume or revenue

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6
Q

Variance

A

The difference between actual financial outcomes and the budgeted financial outcomes

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7
Q

Variance analysis

A

The process of calculating variances and attempting to identify their causes

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8
Q

Zero-based budgeting/zero budgeting

A

A system of budgeting where no money is allocated for costs or spending unless they can be justified by the fund holder (they are given a zero value)

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