A financial plan for the future concerning the revenues and costs of a business
Give three uses of a Budget?
Control income and expenditure
Provide direction and co-ordination for business objectives
Set targets and establish priorities
What are in an effective Budget system?
Individual budgets to lay down a plan of action
Performance is monitored against the budget
What are the different ways a business may use a budget?
Sales budget
Production cost budget
Profit budget
What is the difference with fixed and flexible budget?
Fixed budgets are set to remain even with changes in the market . Flexible can be changed to allow for changes to reflect changing business environment
