Download - Managing Finance and Budgets
Managing Finance and Budgets
Seminar 10
Questions 1
Describe the different forms of budgeting Describe briefly the main steps in the budgetary control
process. Describe the relationship between the budgeted profit, the
variances (favourable and adverse) and the actual profit. Describe the ‘learning curve’ as it applies to the time
taken for a company to produce one level of output as the level of output grows.
Incremental Budgets
Zero-Base Budgets
Activity-Based Budgets
Standard Costs
Different Forms of Budgeting
The budgetary control process
Prepare budgets
Perform and collect information on actual performance
Respond to variances between planned and actual
performance and exercise control
equals
minus
Actual profit
plus
All adverse variances
All favourable variances
Budgeted profit
Relationship between the budgeted and actual profit
The learning curve effect
Time taken
per unit of
output
Cumulative units of output