The agreed, planned income of a business over a period of time. (Also described as revenue or sales budget)
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Expenditure Budget
The agreed, planned expenditure of a business over a period of time.
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Profit Budget
The agreed, planned profit of a business over a period of time.
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Budget
Financial plans for the future looking at revenue from sales and expected costs over a period of time.
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Variance Analysis
The process of investigating any differences between forecast data and actual figures. A variance occurs when an actual figure for sale/expenditure differs from what was expected. Two types - adverse and favorable.
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Adverse Variance
When the variance reveals a poorer performance than planned. Eg. Higher costs or sales revenue
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Favorable Variance
When the variance proves that the performance is better than expected. Eg. Lower costs or higher sales
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Budgetary Control
Establishment of the budget and continuous comparison to actual and budgeted results in order to ascertain variances from the plan and to provide a basis of revision of objects or strategy
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Delegation
Passing of authority (but not responsibility) down the organizational structure.
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Other cards in this set
Card 2
Front
Expenditure Budget
Back
The agreed, planned expenditure of a business over a period of time.
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