Budgets
- Created by: thekoko
- Created on: 16-11-19 16:01
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- Budgets
- Definitions
- A budget is simply a financial plan for the forthcoming year, that is drawn up to help a business achieve its objectives.
- Budgetary control- prepares financial plans, compares plan with actual results and analyses variances
- Sales budgeting- the sales budget contains an items of a company sales expectations for budget period in both units and pounds
- Production cost budget- The cost incurred when manufacturing a product. this combines raw material and labour
- Different types of budgeting
- Sales budget
- Production cost budget
- Historical budgeting
- Zero based budegting
- Variances
- Positive/favourable-higher than expected profit
- Adverse/unfavourable- lower than expected profit
- How to set budgets
- 1. Set objectives
- 2. Market reasearch
- 4.Sales Budget
- 6.Overall profit budget
- 5.Expenditure budget
- 7. Divsional budgets
- 3. Costs
- Definitions
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