Budget variances

Question 1

Zero budgets ao1

Answer 1

Involves managers starting with a clean sheet where they must justify all expenditure

Question 1

Budget ao1

Answer 1

A financial plan for the future concerning costs and revenue.

Question 2

Advantages of budgeting

Answer 2

• allows stakeholders to monitor business performance
• can make alterations before major financial issues

Question 3

Disadvantages of budgeting

Answer 3

-How relevant and accurate is the data
- time consuming to create, implement and monitor.

Question 4

Variance ao1

Answer 4

When there is a difference between actual and budget figures

Question 5

Adverse

Answer 5

Actual figures worse than budget