Activity-Based Budgeting (ABB) involves establishing the activities that incur costs in each function of an organization, defining the relationships between activities, and using the information to allocate resources efficiently.
Activity-Based Budgeting (ABB) is a financial management approach that allocates costs based on the activities that generate costs, aiming to improve budgeting accuracy and efficiency.
An in-depth examination of 'Actuals' in commodities trading and financial reporting, including definitions, historical context, types, key events, formulas, charts, examples, and more.
The difference between the administration overheads budgeted for in an accounting period and those actually incurred.
A comprehensive look into Advertising Spend, its historical context, types, key events, models, importance, and related terms.
An in-depth exploration of allowances, including their definition, types, examples, historical context, and applicability.
An in-depth exploration of alternative budgets, including their types, importance, and application in organizational management.
Understanding the baseline budget, its significance, history, types, key events, mathematical models, practical examples, and more in the realms of economics, finance, and management.
A deep dive into the world of classified government funds allocated for secret operations and projects, known as the black budget.
Bottom-up budgeting involves the participation of lower management in the budget creation process, fostering detailed and realistic financial planning.
An accounting system in which each department or branch of a business is established as a separate cost centre or budget centre. The net profit per branch may be added together to arrive at the profit for the whole business.
An in-depth look at Budget Cost Allowance, including historical context, key components, types, applications, examples, and more.
A way of analyzing a budget and presenting financial statements under major headings, each managed by a particular manager, sometimes involving responsibility for multiple budget expenditure heads.
An in-depth exploration into the process of predicting future budgets, including historical context, types, key events, methods, and practical applications.
Understanding the concept, importance, and application of budget periods in financial planning and control.
An in-depth exploration of budget slack, its causes, consequences, and implications in the financial planning process.
The Budget Year is the period for which an entity’s budget is prepared, often aligning with the financial year, essential for financial planning and management.
A comprehensive guide to understanding the concept of the budget year, its historical context, applications in government and finance, and related terms.
The process by which financial control is exercised within an organization through the preparation and comparison of budgets for income and expenditure.
An in-depth analysis of Budgetary Slack, its historical context, implications, and impact on organizational performance and financial planning.
A comprehensive guide to understanding Budgeted Cost, its importance, applications, and related concepts.
A comprehensive guide to understanding budgeted mix, including its historical context, importance, types, key events, and applications.
A comprehensive overview of Budgeted Production, including historical context, types, key events, formulas, importance, applicability, examples, considerations, and more.
Budgeted Revenue refers to the income level included in a budget representing the income that is expected to be achieved during that budget period. It is a crucial component in financial planning and management.
An in-depth look at the capital budget, a vital component of financial planning that covers expected capital expenditures for organizations.
An in-depth exploration of capital expenditure budget, its historical context, types, importance, examples, related terms, and more.
Capital Investment Appraisal is a vital process in determining the potential profitability and risks associated with long-term investments. This evaluation helps businesses make informed decisions regarding the allocation of their financial resources.
An in-depth examination of the capital investment budget, covering its historical context, types, key events, and detailed explanations.
A comprehensive overview of Cash Budgets, their importance in financial planning, categories, key elements, historical context, formulas, examples, related terms, and practical applications.
Cash Flow Management focuses specifically on the movement of cash in and out of a business, ensuring that a company has enough liquidity to meet its obligations while avoiding overspending.
Limits set on overall expenditure in cash terms to promote efficient use of resources, particularly in the public sector.
A Comprehensive Spending Review (CSR) is a periodic review process undertaken by governments to set multi-year budgets for various government departments, determining allocation of resources and priorities for public spending.
An in-depth exploration of contingency reserves, including their historical context, types, key events, detailed explanations, importance, applicability, and related terms.
A continuous budget, also known as a rolling budget, is a financial plan that updates regularly to reflect recent performance and future projections. This method encourages constant adaptation and short-term planning.
Understanding the Control Period: Definition, Types, Applications, and Importance in Financial Management
Comprehensive analysis of controllable costs, their importance in management, types, historical context, formulas, and applications.
An in-depth exploration of cost apportionment, including historical context, types, key events, models, charts, applicability, and more.
A comprehensive look into cost codes, their importance in accounting, and how they help businesses manage and track expenses effectively.
A comprehensive guide to understanding the procedure of cost estimation, its importance, types, methods, and applications.
A comprehensive definition and exploration of the term 'Cost Limit' along with its significance in various fields such as project management, construction, and budgeting.
Cost Management refers to the methods and strategies organizations employ to control and plan their budgets, ensuring financial efficiency and resource optimization.
A predetermined level of cost expected to be incurred by a cost item used in the supply, production, or operation of a service, product, process, or cost centre.
An extensive look at departmental budgets, their importance, key events, detailed explanations, and practical examples in organizational finance.
Direct Labor Variance refers to the difference between the actual labor costs incurred in production and the budgeted labor costs. This variance helps in analyzing the efficiency and rate of labor utilization.
A detailed exploration of the direct labour rate of pay variance in standard costing systems, including its formulae, key events, importance, applicability, and examples.
Explore the concept of Direct Labour Rate Variance, its importance in cost accounting, historical context, types, key events, formulas, examples, and related terms.
Direct Materials Usage Variance compares the actual quantity of material used in production with the standard quantity allowed, valued at the standard price. It helps determine the impact on budgeted profit due to material usage.
An in-depth exploration of discretionary costs, including historical context, types, key events, detailed explanations, and practical examples.
An in-depth look at dynamic budgeting, its historical context, types, key events, mathematical models, importance, applicability, and more.
Earmarked Funds are financial resources that are set aside for specific purposes or projects. These funds ensure financial accountability and transparency by ensuring that allocated resources are used for intended objectives.
An in-depth exploration of earmarked funds, their historical context, categories, key events, models, importance, applicability, examples, and related terms. Discover the significance of earmarked funds in economics, finance, and public policy.
Earmarks: A detailed exploration of the term, its historical context, types, and applications in politics. Understand how earmarked funds influence budgeting and government spending.
The systematic approach to estimating production costs by constructing synthetic costs, primarily used in budgeting, planning, and standard costing.
Comprehensive coverage of expenditure, including types, historical context, key events, mathematical models, and its importance in various sectors.
A comprehensive guide to understanding Expenditure Codes, their importance in accounting, types, usage, and related concepts.
An in-depth exploration of expenditure variance, its types, implications, and methodologies in finance and accounting.
A comprehensive guide to expense management, including historical context, key events, detailed explanations, mathematical models, charts, applicability, examples, and more.
Favorable variance in standard costing and budgetary control represents any difference between actual and budgeted performance where this creates an addition to the budgeted profit, such as when actual sales revenue exceeds the budgeted amount or actual costs are lower than budgeted costs.
A favourable variance occurs when actual performance exceeds budgeted performance, resulting in an increase in budgeted profit.
Feedback Control is an approach where managers monitor outputs achieved against a budget or desired output. Problems are only identified after they have occurred.
A financial budget is a comprehensive plan detailing expected revenues and expenses over a specific period, helping organizations manage their financial resources effectively.
Comprehensive guide to Financial Forecasting, including its definition, types, applications, examples, historical context, and frequently asked questions.
A detailed exploration of financial planning, covering its historical context, types, key events, explanations, mathematical formulas, charts, applicability, examples, related terms, and more.
A budget that expresses in both financial and quantitative terms the planned levels of finished goods at various times during the budget period.
An in-depth guide to understanding fixed budgets, their significance, and their application in financial planning.
A fixed expense remains constant regardless of the level of business activity, such as rent or insurance premiums.
Fixed Overhead Absorption Rate refers to the allocation of budgeted fixed overheads to the budgeted production measure. This is crucial for cost accounting and budgeting.
Fixed Overhead Expenditure Variance represents the difference between budgeted fixed overhead and actual incurred fixed overhead in a standard costing system.
Discover the intricacies of Fixed Overhead Variance, which represents the difference between budgeted and actual fixed overhead costs.
An in-depth explanation of Fixed Overhead Volume Variance, its historical context, calculations, and applicability in standard costing systems.
An in-depth look at flexed allowance, a pivotal component in budgeting, which adjusts budgeted expenditures to the actual level of activity achieved.
A budget that accommodates changing circumstances by adjusting budget allowances based on actual levels of activity. It contrasts with a fixed budget and is used to manage operational variance and revision variance.
A detailed examination of functional budgets, their historical context, types, key events, importance, applicability, examples, considerations, related terms, comparisons, interesting facts, and more.
General expenses are those expenses of an organization that cannot easily be placed in any other cost classification. They represent miscellaneous costs that support the overall functioning of the organization.
Household duties encompass a variety of tasks and responsibilities essential for maintaining a functional and organized living environment. These duties range from cleaning and cooking to budgeting and home maintenance.
An in-depth exploration of idle capacity, its causes, implications, and management within various sectors.
In standard costing, an income standard refers to the predetermined level of income expected to be generated by an item to be sold. An income standard is often applied to a budgeted quantity to determine the budgeted revenue.
An incremental budget is prepared using a previous period's budget or actual performance as a basis, with incremental amounts added for the new budget period. This method can be straightforward but may overlook significant changes in operating conditions.
An Indirect Cost Rate is used to allocate indirect costs to contracts and projects. It is essential for managing overhead and ensuring accurate project budgeting.
A comprehensive guide to Line-Item Budgeting, a traditional budgeting method where expenditures are listed by category or item without explicit links to program objectives.
A comprehensive guide on Marketing Cost Variance, its types, calculation, importance, and practical examples in budgeting and financial management.
The Master Budget is the final coordinated overall budget for an organization, encompassing all functional, capital, cash-flow budgets, and budgeted profit and loss statements and balance sheets for a given period.
An in-depth look at Material Price Variance, its significance in financial management, and the methods for calculation.
A comprehensive guide to understanding, planning, and managing media budgets in marketing and advertising.
Net Price refers to the actual cost of a good or service after including all additional fees such as taxes, discounts, and other charges.
A thorough exploration of non-controllable costs, including their definition, significance, types, historical context, and relevant examples.
The volume of activity used to determine the overhead absorption rate in a system of absorption costing, usually the budgeted volume of production for a period.
Off-budget programs refer to initiatives and expenditures that are funded independently and do not influence regular budget tallies.
An in-depth exploration of the Office for Budget Responsibility (OBR), its functions, history, importance, and role in the UK public finance system.
Learn the distinctions between one-time charges and recurring costs, their definitions, examples, and implications in business and finance.
The Operating Fund is used to record general, day-to-day operational transactions within an organization. It represents the primary repository for handling regular income and expenses.
An operating statement is a comprehensive financial and quantitative report provided to an organization's management to record and evaluate the performance of a specific operational area for a selected budget period. This statement includes production levels, incurred costs, revenue generation, budget comparisons, and historical performance data.
An in-depth exploration of operational budgets, emphasizing their role in short-term, day-to-day operations and excluding long-term investments.
Operational Reserves are short-term funds allocated for handling day-to-day operational risks and expenses. This entry delves into their importance, types, management strategies, and real-world applications.
Outcome-Based Budgeting is a budgeting approach that focuses specifically on the end results rather than the activities undertaken.
A detailed exploration of overabsorbed overhead, its causes, implications, and comparison with underabsorbed overhead in the context of absorption costing.
Understanding how overhead cost absorbed reflects the actual production for a period multiplied by the budgeted overhead absorption rate. This involves comprehending its significance in cost accounting, related formulas, applicability, and associated terms.
Participative Budgeting involves various levels of management in setting budgeted performance levels. While it's a widely researched area, the benefits of participative budgeting can be hard to measure.
A detailed exploration of Participatory Budgeting, its history, types, key events, applications, importance, and more.
Understanding the financial strategy of prioritizing savings and investments before spending on other categories.
