Budgeting 0.0 / 5 ? Applied BusinessBudgetingASAQA Created by: TomD2411Created on: 13-05-16 10:11 23154 Across 1. Businesses often create a master budget compiled from the individual budgets. This allows owners and managers to get an idea of how the cumulative effect of the budget decisions is likely to impact on its profitability. (6, 7) 4. Variance analysis is one of the methods used to monitor company performance. It is the comparison of what actually happened with what the business budgeted (planned to happen). (8, 8) 5. A favourable variance occurs when the actual results are better than those anticipated and planned for the budget. (10, 8) Down 2. An adverse variance occurs when the business actual results are worse than those anticipated and planned for in the budget. (7, 8) 3. A budget is a financial plan for the future operations of the business. Budgets are used to set targets to monitor performances and control operations. (6)
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