Budgets and Cash-Flow Forecasts (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is a budget?
What is a budget?
A financial plan setting targets
How many components typically make up a budget?
How many components typically make up a budget?
Three components
What should a new business base its income budget on?
What should a new business base its income budget on?
Market research findings
What formula calculates profit or loss budgets?
What formula calculates profit or loss budgets?
Forecast Income - Forecast Expenditure
What is the first stage in setting budgets?
What is the first stage in setting budgets?
Prepare income budgets
Why do businesses need budgets as part of their business plan?
Why do businesses need budgets as part of their business plan?
Banks require them for finance
Which difficulty do new businesses face when setting budgets?
Which difficulty do new businesses face when setting budgets?
Lack of historical evidence
How is a variance calculated?
How is a variance calculated?
Actual Figure - Budget Figure
When does a favourable variance occur?
When does a favourable variance occur?
Costs lower or revenues higher than plan
Which is a benefit of budgets?
Which is a benefit of budgets?
Identifying inefficiency and waste