Budgeting

Activity-Based Budgeting: An Overview
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): A Strategic Approach to Financial Planning
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.
Actuals: Commodities and Financial Realities
An in-depth examination of 'Actuals' in commodities trading and financial reporting, including definitions, historical context, types, key events, formulas, charts, examples, and more.
Allowances: Regular Spending Amounts Explained
An in-depth exploration of allowances, including their definition, types, examples, historical context, and applicability.
Baseline Budget: The Standard Budget Without Any Alternative Scenarios
Understanding the baseline budget, its significance, history, types, key events, mathematical models, practical examples, and more in the realms of economics, finance, and management.
Black Budget: Secret Government Funds
A deep dive into the world of classified government funds allocated for secret operations and projects, known as the black budget.
Branch Accounting: A Detailed Overview
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.
Budget Expenditure Head: Analyzing and Presenting Financial Statements
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.
Budget Forecasting: Process of Predicting Future Budgets
An in-depth exploration into the process of predicting future budgets, including historical context, types, key events, methods, and practical applications.
Budget Year: A Financial Planning Period
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.
Budget Year: Definition and Overview
A comprehensive guide to understanding the concept of the budget year, its historical context, applications in government and finance, and related terms.
Budgetary Control: Financial Management Tool
The process by which financial control is exercised within an organization through the preparation and comparison of budgets for income and expenditure.
Budgeted Production: Estimated Units Expected to Be Produced
A comprehensive overview of Budgeted Production, including historical context, types, key events, formulas, importance, applicability, examples, considerations, and more.
Budgeted Revenue: Expected Income During a Budget Period
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.
Capital Budget: Planning for Long-term Investments
An in-depth look at the capital budget, a vital component of financial planning that covers expected capital expenditures for organizations.
Capital Investment Appraisal: Evaluation of Long-Term Investment Decisions
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.
Cash Budget: An Essential Financial Planning Tool
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: Effective Handling of Business Finances
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.
Comprehensive Spending Review (CSR): Multi-Year Budget Setting for Government Departments
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.
Contingency Reserves: Funds for Unforeseen Developments
An in-depth exploration of contingency reserves, including their historical context, types, key events, detailed explanations, importance, applicability, and related terms.
Continuous Budget: Dynamic Financial Planning for Organizations
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.
Controllable Costs: An Overview
Comprehensive analysis of controllable costs, their importance in management, types, historical context, formulas, and applications.
Cost Apportionment: An Overview
An in-depth exploration of cost apportionment, including historical context, types, key events, models, charts, applicability, and more.
Cost Code: A System of Tracking Expenses
A comprehensive look into cost codes, their importance in accounting, and how they help businesses manage and track expenses effectively.
Cost Estimation: An In-Depth Guide
A comprehensive guide to understanding the procedure of cost estimation, its importance, types, methods, and applications.
Cost Limit: Definition and Implications
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: Methods to Control and Plan a Budget
Cost Management refers to the methods and strategies organizations employ to control and plan their budgets, ensuring financial efficiency and resource optimization.
Cost Standard: Predetermined Level of Expected Cost
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.
Departmental Budget: A Detailed Guide
An extensive look at departmental budgets, their importance, key events, detailed explanations, and practical examples in organizational finance.
Direct Labor Variance: Analyzes the Efficiency and Rate of Labor Used in Production
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.
Direct Labour Rate of Pay Variance: Understanding Cost Control
A detailed exploration of the direct labour rate of pay variance in standard costing systems, including its formulae, key events, importance, applicability, and examples.
Direct Labour Rate Variance: Understanding Variance in Labor Costs
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: A Key Concept in Standard Costing Systems
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.
Earmarked Fund: Funds Designated for a Particular Purpose or Project
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.
Earmarked Funds: Designated Resources for Specific Purposes
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: Definition and Applications in Politics
Earmarks: A detailed exploration of the term, its historical context, types, and applications in politics. Understand how earmarked funds influence budgeting and government spending.
Engineered Costs: Building Up Costs Logically
The systematic approach to estimating production costs by constructing synthetic costs, primarily used in budgeting, planning, and standard costing.
Expenditure: An In-Depth Analysis
Comprehensive coverage of expenditure, including types, historical context, key events, mathematical models, and its importance in various sectors.
Expenditure Code: Definition and Explanation
A comprehensive guide to understanding Expenditure Codes, their importance in accounting, types, usage, and related concepts.
Expense Management: Controlling and Monitoring Spending to Adhere to the Budget
A comprehensive guide to expense management, including historical context, key events, detailed explanations, mathematical models, charts, applicability, examples, and more.
Favorable Variance: Positive Budgetary Performance
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.
Feedback Control: An Approach to Financial Control
Feedback Control is an approach where managers monitor outputs achieved against a budget or desired output. Problems are only identified after they have occurred.
Financial Budget: Planning and Management of Financial Resources
A financial budget is a comprehensive plan detailing expected revenues and expenses over a specific period, helping organizations manage their financial resources effectively.
Financial Forecasting: The Process of Estimating Future Financial Outcomes
Comprehensive guide to Financial Forecasting, including its definition, types, applications, examples, historical context, and frequently asked questions.
Financial Planning: Comprehensive Guide to Formulating Financial Goals
A detailed exploration of financial planning, covering its historical context, types, key events, explanations, mathematical formulas, charts, applicability, examples, related terms, and more.
Fixed Budget: A Static Financial Plan
An in-depth guide to understanding fixed budgets, their significance, and their application in financial planning.
Fixed Expense: Definition and Overview
A fixed expense remains constant regardless of the level of business activity, such as rent or insurance premiums.
Fixed Overhead Absorption Rate: Budgeted Cost Allocation
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: Analyzing Budget Deviations
Fixed Overhead Expenditure Variance represents the difference between budgeted fixed overhead and actual incurred fixed overhead in a standard costing system.
Fixed Overhead Variance: An In-Depth Analysis
Discover the intricacies of Fixed Overhead Variance, which represents the difference between budgeted and actual fixed overhead costs.
Fixed Overhead Volume Variance: Understanding the Concept
An in-depth explanation of Fixed Overhead Volume Variance, its historical context, calculations, and applicability in standard costing systems.
Flexed Allowance: A Key Concept in Budgeting
An in-depth look at flexed allowance, a pivotal component in budgeting, which adjusts budgeted expenditures to the actual level of activity achieved.
Flexible Budget: Adaptive Financial Planning
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.
Functional Budget: Comprehensive Overview
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: Unclassified Organizational Costs
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: Responsibilities Associated with Managing a Home
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.
Income Standard: Predetermined Income Level
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.
Incremental Budget: Understanding the Basics
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.
Indirect Cost Rate: Allocation of Overhead Expenses
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.
Line-Item Budgeting: Traditional Budgeting Method
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.
Marketing Cost Variance: Detailed Explanation and Importance
A comprehensive guide on Marketing Cost Variance, its types, calculation, importance, and practical examples in budgeting and financial management.
Master Budget: Comprehensive Organizational Planning
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.
Non-Controllable Costs: A Comprehensive Overview
A thorough exploration of non-controllable costs, including their definition, significance, types, historical context, and relevant examples.
Normal Volume: Budgeted Volume of Production
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: A Detailed Overview
Off-budget programs refer to initiatives and expenditures that are funded independently and do not influence regular budget tallies.
One-time Charge vs. Recurring Costs: Definitions and Differences
Learn the distinctions between one-time charges and recurring costs, their definitions, examples, and implications in business and finance.
Operating Fund: General, Day-to-Day Operational Transactions
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.
Operating Statement: Detailed Financial Performance Analysis
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.
Operational Reserves: Short-term Funds for Managing Risks and Expenses
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.
Overabsorbed Overhead: Understanding Absorption Costing Variances
A detailed exploration of overabsorbed overhead, its causes, implications, and comparison with underabsorbed overhead in the context of absorption costing.
Overhead Cost Absorbed: Actual Production Multiplied by Overhead Absorption Rate
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: Engaging All Levels of Management in Budgeting
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.

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