Management uses the budgeted income statement to track how well both departments and the company as a whole is performing during a period. At the beginning of each period, management typically sets budget and performance goals that they expect the company to meet. These goals are based on perfor...
Definition:A budget is a formal statement of estimated income and expenses based on future plans and objectives. In other words, a budget is a document that management makes to estimate therevenuesandexpensesfor an upcoming period based on their goals for the business. ...
A budget is a microeconomic concept that reveals the trade-off made when one good is exchanged for another. In terms of the bottom line—or the end result of this trade-off—asurplus budgetmeans profits are anticipated, abalanced budgetmeans revenues are expected to equal expenses, and adefici...
C。解析:budget 预算的目的是 keep track of income and expenses 记录收入和支出。spend as much money as possible 尽可能多花钱不是预算目的。save money for a rainy day 为不时之需存钱不是预算的主要目的。invest in the stock market 投资股票市场不是预算的目的。 答案解析: 1. 莉莉的年龄: 文中提...
A budget can help you save for short-term goals – like a much-needed vacation – and longer-term goals, like retirement.
What is the difference between a static and flexible budget plan? In a static budget, income and expenditure figures are unchanged throughout the given time period. Regardless of changes that occur to the company’s finances, the budget remains the same. Flexible budgets, on the other hand, ...
A fixed budget is a budget that does not change or flex for increases or decreases in volume. (“Volume” could be sales, units produced, or some other activity.) A fixed budget is also known as a static budget. Example of Fixed Budget To illustrate a fixed budget, let’s assume that...
Think of it this way: Your budget is your road map, highlighting key financial checkpoints for every phase of the business journey. But once that journey has started, it's common for circumstances to change, ultimately outdating the original assumptions that were made when the budget was creat...
After evaluating the sales income that an organization may anticipate over a certain period, managers can utilize this data to help establish and achieve sales targets. For instance, if a company's monthly budget is $10,000, and it employs ten sales representatives, management may anticipate ...
A static budget is a budget in which the amounts will not change even with significant changes in volume. In contrast to a static budget, a company’s sales department might have a flexible budget. In the flexible budget, the sales commissions expense budget would be stated as a percentage...