Business functions - accounting finance
- Created by: Ali Bland
- Created on: 05-03-15 10:10
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- Business Functions --> Accounting/ Finance 1
- What is a budget?
- A forward finance plan
- An estimate of the income/ expenditure of a business over a period of time
- Budgets can be for: income, profit, expenditure
- Variance analysis
- Favourable
- Sales/profits > expected
- Costs < expected
- Adverse
- Sales/profits < expected
- Costs > expected
- Favourable
- Benefits of budgeting
- Provides a framework for allocating resources
- Aid control and monitoring
- Encourages managers to plam ahead
- Provide targets which can be motivating to staff
- Causes of cash flow problems
- Too much stock
- Poor or late payers
- Seasonal demand
- Improving cash flow
- Increasing sales
- Arranging an overdraft
- Factoring
- What is a budget?
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