726068
Description
Mind Map by georgeware9, updated more than 1 year ago
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Created by georgeware9
over 10 years ago
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Budgets
- Income Budget
- Shows agreed, planned-for
income or sales revenue of the
business over set period of time
- Shows agreed, planned-for
income or sales revenue of the
business over set period of time
- Expenditure budget
- Shows agreed planned for costs
or expenditure of the business
over a set period of time
- Shows agreed planned for costs
or expenditure of the business
over a set period of time
- Profit Budget
- Combines income and expenditure budgets
and forcasts how much profit the business
will make over a set period of time
- Combines income and expenditure budgets
and forcasts how much profit the business
will make over a set period of time
- Benefits of using budgets
- Can measure performance
- Can be motivational
- can make departments accountable
- give business greater control and
can monitor progress
- Can measure performance
- Drawbacks of using budgets
- New business startups lack
experience in setting realistic budgets
- Costs are volatile and can change quickly
- Chances may be missed if budgets are to strict
- New business startups lack
experience in setting realistic budgets
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