Unit 17-Setting Budgets Revision Cards on AQA Business Studies for AS 3.5 / 5 based on 2 ratings ? Business StudiesASAll boards Created by: audrey vunziCreated on: 22-12-11 07:53 Key Terms Definition Budget-Target for costs or revenue that a firm or department must aim to reach over a given period of time. Adverse variance- Difference between budgeted/actual figures that is damaging to a firm's profit (e.g cost up/revenue down) Criteria- Yardsticks against which success (or lack of it) can be measured Delegated- Passing authority down the hierachy Favourable variance- Difference between budgeted/actual figures that boosts a firm's profits (e.g. revenue up/cost down) 1 of 3 A Grade Application- A Wiser Dragon (Setting Budge 2 of 3 Issues For Analysis/Evaluation - Setting Budgets Issues for Analysis Variances are the key to analysing budgets. When identified, the question is 'why the variance occured?'. Variance analysis identifies symptoms not the cure. Budgets/Variances are really good for people in firm. They help achieve figures. Evaluation Budgets are a management tool; they are only useful as how they are used. Budgets can tell you a great deal about workplace culture. Are they imposed and used for control of employers. Using budgets has both benefits/drawbacks. 3 of 3
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