Zero-Based Budgeting
Zero-Based Budgeting in a Nutshell Zero-based budgeting (ZBB) is a budgeting method where every budget starts at zero each period and managers must justify every pound they want to spend. Activities are…
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11 min
Spec point: A-Level Edexcel – 2.2.4 Budgets
Every note that covers this specification point.
Adverse Variance
Adverse Variance in a Nutshell An adverse variance is a difference between budget and actual that leaves profit lower than planned, because costs are higher than budgeted or revenue is lower than…
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12 min
Favourable Variance
Favourable Variance in a Nutshell A favourable variance occurs when actual results are better for profit than the budget, either because revenue is higher than planned or costs are lower than planned.…
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9 min
Budgeting
Budgeting in a Nutshell Budgeting is the process of setting financial targets for income and spending, then checking actual results against them. Budgets can be built from last year’s figures (incremental) or…
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9 min
Budget
Budget in a Nutshell A budget is a financial plan for the future that sets targets for income and limits for spending over a fixed period, usually a year. The main types…
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11 min
Budget Variance
Budget Variance in a Nutshell A budget variance is the difference between a budgeted (planned) figure and the actual figure. It is calculated as actual minus budget, then labelled favourable if it…
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10 min