Theme 2.2.4 - budgeting Flashcards

1
Q

Budget

A

A quantitative economic plan prepared and agreed in advance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Budgetary control

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Historical figures

A

Quantitative information based on past trading records.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Production cost budget

A

A firm’s planned production costs for a future period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Sales budget

A

A firm’s planned sales for a future period of time - can be measured in terms of volume or revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Variance

A

The difference between actual financial outcomes and those budgeted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Variance analysis

A

The process of calculating variances and attempting to identify their causes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Zero-based budgeting or zero budgeting

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly