1
Q
what is the purpose of a budget?
A
To financial plan that is agreed in advance.
2
Q
what is sales volume budget?
A
The planned sales level
3
Q
what is sales revenue budget?
A
The sales volume budget + price
4
Q
what is production cost budget?
A
is the sales volume budget + all planned production costs
5
Q
what is zero-based budgeting?
A
when costs cannot be justified therefore no money is allocated to those costs
6
Q
what does variance mean?
A
the difference between the business budget figure of the business and the actual figure
7
Q
whats the difference favourable and adverse variance?
A
favourable means its better than what the company expected while adverse means its worse than what they expected.
Business
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