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Income Budget - This shows the predicted and planned income of a business over a period of time.
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Expenditure Budget - This is the agreed, planned cash outflows of a business over a period of time.
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Profit Budget - This is the predicted amount the business expects to make over a stated period of time.
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Variance - The process of investigating any difference in the forecast data and the actual figures.
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Established priorities, provided direction and coordination, assigns responsibility, motivates staff, improves efficiency, encourages forward planning
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There could be incorrect allocations, may not take full account of external factors, will not work as well if there is poor communication within the business.
•
Income Budget - This shows the predicted and planned income of a business over a period of time.
•
Expenditure Budget - This is the agreed, planned cash outflows of a business over a period of time.
•
Profit Budget - This is the predicted amount the business expects to make over a stated period of time.
•
Variance - The process of investigating any difference in the forecast data and the actual figures.
•
•
Established priorities, provided direction and coordination, assigns responsibility, motivates staff, improves efficiency, encourages forward planning
•
There could be incorrect allocations, may not take full account of external factors, will not work as well if there is poor communication within the business.
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