Budgeting

Question 1

Budget

Answer 1

A quantitate economic plan Prepared and agreed in advance

Question 2

Budgetary control

Answer 2

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

Question 3

Historical figures

Answer 3

Quantitative information based on past trading records

Question 4

Production cost budget

Answer 4

A firms planned production costs for a future period of time

Question 5

Sales budget

Answer 5

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

Question 6

Variance

Answer 6

The difference between the actual financial outcomes and those budgeted

Question 7

Variance analysis

Answer 7

The process of calculating variances and attempting to identify their causes

Question 8

Zero-based budgeting or zero budgeting

Answer 8

A system of budgeting where no money is allocated for costs or spending unless they can be justified by the fund holder.