To put it simply, a budget plans future saving and spending as well as planned income and expenses. Budgeting may be carried out by individuals or by companies to estimate whether or not they can continue to operate with its projected income and expe
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Name two different types of budgets?
Forecast Budget A forecast budget is where estimated figures are prepared which can then be adjusted when actual figures come in. In a forecast budget, figures from the previous year are often used as estimates for the current year. As more current
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What is a budget Variance?
Budget variances can result from two sources - the things that can be controlled and things that cannot. A poorly planned budget, for example, is a controllable factor. Likewise, things like labor costs can be controlled by taking measures such as pr
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What are the two types of Variances?
Positive / Favourable (better than expected) or Adverse / unfavourable (worse than expected)
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What is the formula for working out the variance percentage?
Variance Percentage = ((Actual -Forecast)/Forecast) x 100.
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Other cards in this set
Card 2
Front
Name two different types of budgets?
Back
Forecast Budget A forecast budget is where estimated figures are prepared which can then be adjusted when actual figures come in. In a forecast budget, figures from the previous year are often used as estimates for the current year. As more current
Card 3
Front
What is a budget Variance?
Back
Card 4
Front
What are the two types of Variances?
Back
Card 5
Front
What is the formula for working out the variance percentage?
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