budgets 0.0 / 5 ? Business StudiesBudgetsASAQA Created by: anna28Created on: 22-04-15 16:26 Key words Budget - A financial plan for the future, concerning the revenues and costs of a business Adverse variance - when costs are higher than expected or revenue is lower than expecteed 1 of 4 Income budgets A target set for the amount of revnue to be achieved over a period of time can be split by product/service/departments Can be individual sles targets for staff informed by market research and sales forecast 2 of 4 Expenditure budgets can be split by department/function/product responsibility can be passed on to individual managers Informs cash outflows in cash flow forecast allows monitoring on expenditure A limit placed on the amount to be spent in a given period of time 3 of 4 profit A target set for surplus between income and expenditure in a given period of time, may be set for a business as a whole or individual departments Business plan will be used to hghlight potential and feesability of the business 4 of 4
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