P2 Hw 9- Budgets Flashcards
1
Q
Budget
A
Financial target
2
Q
Historical budget
A
A budget set based on past data and budgets
3
Q
Zero based budget
A
When a business makes their budget by starting at zero and working up
4
Q
Cost budget
A
Limit of how much a business can spend
5
Q
Profit budget
A
Target of how much profit they want to make
6
Q
Variance analysis
A
The difference between the actual outcomes and the budget
7
Q
Favourable analysis
A
When the the actual amount is more more than the budget or the costs are less
8
Q
Adverse variance
A
When the actual amount is less than the budget or the costs are more
