Budgets (Edexcel 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 the key difference between a budget and a forecast?
What is the key difference between a budget and a forecast?
Budget sets targets; forecast predicts
Which is NOT one of the six key purposes of budgets?
Which is NOT one of the six key purposes of budgets?
Elimination of all business risks
What is zero-based budgeting (ZBB)?
What is zero-based budgeting (ZBB)?
Spending justified; no automatic money
When does a favourable variance (F) occur?
When does a favourable variance (F) occur?
Actual results better than budget
If budgeted costs are £20,000 but actual costs are £22,000, what variance occurs?
If budgeted costs are £20,000 but actual costs are £22,000, what variance occurs?
£2,000 adverse variance
What are the three stages of budgetary control?
What are the three stages of budgetary control?
Prepare plans; compare; analyse variance
Which is a disadvantage of zero-based budgeting?
Which is a disadvantage of zero-based budgeting?
Time-consuming information collection
What does profit variance reflect?
What does profit variance reflect?
All other variances combined
Which difficulty arises from over-ambitious budget objectives?
Which difficulty arises from over-ambitious budget objectives?
Targets become meaningless & demotivate
How do budgets improve efficiency in medium/large businesses?
How do budgets improve efficiency in medium/large businesses?
Enable delegation of financial decisions