Budgeting and variance Flashcards Preview

A Level Business Studies - Accounting And Finance > Budgeting and variance > Flashcards

Flashcards in Budgeting and variance Deck (5):
1

What are 2 quantitive factors when looking for finance

1. How much debt do we already have
2. Exactly how expensive is this source of finance

2

What is a qualitative factor when looking for a source of finance

1. Do we remain in complete control of the business and the finance

3

Define what a budget is

A budget is allowing a set amount of money each month for various expenses

4

Define what variance is when talking about budgeting

Variance is where there is a difference between planned budget and the actual outcome of the budget

5

Define the two types of variance

1. Positive variance - when you come in under budget
2. Negative variance - when you come in over budget