BUDGETING

It’s a proactive approach to organizing your finances.

• Budgetary Control

• Budgeting

• Incremental Budgeting

It is a number you arrive at by subtracting your estimated cost from revenue.

• One-Time Expenses

• Estimated Revenue

• Profit

This is the money that travels in and out of the business.

• Fixed Costs

• Variable Costs

• Cash Flow

is a combination of all other budgets prepared for a specific period. It shows the overall budget plan.

• Master Budget

• Production Budget

• Sales Budget

gives the details of material purchases to be made in the budget period.

• Materials Budget

• Purchase Budget

• Direct Labor Budget

It is a part of Overhead Budget where it includes the costs of framing policies, directing the organization and controlling the business operations.

• Selling and Distribution Overhead Budget

• Administration Overhead Budget

• Manufacturing Overhead Budget

It is also known as variable or sliding sale budget, is a budget which is designed to furnish targeted costs for any level of activity actually attained.

• Cash Budget

• Fixed Budget

• Flexible Budget

All are Method of Budgeting, except for?

• Zero-Based Budgeting

• Production Budgeting

• Activity-Based Budgeting

• Incremental Budgeting

Which is not an advantage of Incremental Budgeting?

• Budgetary slack

• Easy to implement

• Funding stability

• Operational stability

Which is not an advantage of Active-Based Budgeting?

• Evaluation

• Competitive edge

• Resource consumption

• Business as a unit