Budgeting Flashcards
(19 cards)
Sales volume
A key budget - shows planned sales levels
Sales volume
A key budget - shows planned sales levels
Sales revenue
Uses sales volume budget and prices to show planned revenue
Production cost
Based on sales volume budget and shows all planned production costs
Overheads
Shows all planned indirect costs, such as insurance, rent and office wages
Total cost
Shows all the planned business costs
Marketing
Shows all planned spending on, for example, research, advertising and promotions
R&D
Shows all planned expenditure in research and development
Profit
Shows planned revenue, costs and profit
Cash
Shows planned cash inflows and outflows and cash balance
Master
Shows a summary of all budgets - including cost , revenue and profit
Budget
A quantitative economic plan prepared and agreed in advance
Budgetary control
A business system that involves making future plans, comparing the actual results with the planned results and then investigating the causes for any differences
Historical figures
Quantitative information based on past trading records
Production cost budget
A firm’s planned production costs for a future period of time
Sales budget
A firm’s planned sales for a future period of time - can be measured in terms of volume or revenue
Variance
The difference between actual financial outcomes and those budgeted
Variance analysis
The process of calculating variances and attempting to identify their causes
Zero based budgeting
A system of budgeting where no money is allocated for costs or spending unless they can be justified by the fund holder
