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Business Studies Factsheet: 02. Budgeting:- Calculating and Interpreting Variances

  • Business Studies Factsheet: 02. Budgeting:- Calculating and Interpreting Variances

Business Studies Factsheet: 02. Budgeting:- Calculating and Interpreting Variances

  • Price £3.00
  • Code: BSA-FSPI-002
  • What is a budget?
    • A budget is a means of planning and control used by the management of a business or organisation to achieve stated objectives.
    • A budget is commonly set in financial terms e.g. sales revenue budget but can also be expressed in terms of units, e.g. items produced, items sold,number of employees.
    • Budgets can be income budgets for money received, e.g. a sales budget, or budgets for money spent (e.g.administration budget).
    • Most budgets are prepared for the next financial year and are usually broken down into shorter time periods, commonly four-weekly or monthly. This enables control to be exercised over the budget.