Unit 5 Ch17 - Budgets

What is the formula for Profit?

• Profit = Revenue - Costs

• Profit = Revenue + Costs

• Profit = Revenue/Costs

• Profit = Costs/Revenue

• None of the answers

Fill in the blank. Budgets are _______ plans that forecast revenue from sales and expected costs over a time period

• Financial

• Operational

• Marketing

• Human resource

• None of the answers

Select the three main types of budgets:

• Revenue budget

• Expenditure budget

• Profit budget

• Interest budget

• Tax budget

Fill in the blank. A revenue budget includes the likely selling _______ of the product and the expected level of sales.

• Price

• Cost

• Expenditure

• Production

• None of the answers

Select the two other names for an expenditure budget:

• Cost budget

• Production budget

• Profit budget

• Earnings budget

• Revenue budget

Select the other name for a revenue budget:

• Cost budget

• Production budget

• Profit budget

• Earnings budget

• Expenditure budget

What are the correct last 3 steps in constructing a budget?

• Revenue budget -> Cost budget -> Profit budget

• Cost budget -> Revenue budget -> Profit budget

• Profit budget -> Cost budget -> Revenue budget

• Profit budget -> Revenue budget -> Cost budget

• None of the answers

Select all of the difficulties in constructing a budget:

• It may be difficult to forecast sales accurately

• The risk of unexpected changes

• Decisions by governments and other public bodies

• None of the answers

What is the process of investigating any differences between forecasted data and the actual figure?

• Variance analysis

• Cash flow forecast

• Budget

• Break-even analysis

• None of the answers

If actual revenue < budgeted revenue, what type of variance is it?

• Adversarial variance

• Favourable variance

• None of the answers