Budgeting and variance Flashcards Preview

A Level Business Studies - Accounting And Finance > Budgeting and variance > Flashcards

Flashcards in Budgeting and variance Deck (5)
Loading flashcards...
1
Q

What are 2 quantitive factors when looking for finance

A
  1. How much debt do we already have

2. Exactly how expensive is this source of finance

2
Q

What is a qualitative factor when looking for a source of finance

A
  1. Do we remain in complete control of the business and the finance
3
Q

Define what a budget is

A

A budget is allowing a set amount of money each month for various expenses

4
Q

Define what variance is when talking about budgeting

A

Variance is where there is a difference between planned budget and the actual outcome of the budget

5
Q

Define the two types of variance

A
  1. Positive variance - when you come in under budget

2. Negative variance - when you come in over budget