Budgeting

Why might a business use historical budgeting rather than zero-based budgeting?

Why might a company choose incremental budgeting despite its limitations?

If a company continually faces adverse variances in its budgets, what might this indicate?

A clothing retailer set a budget forwages at £30,000 per month, but actual wages increased to £33,000. This variance is?

A manufacturing firm allocates £100,000 for marketing in Q1, only £80,000 has been spent. What is the variance?

What is a key disadvantage of zero-based budgeting?

A business has continuously increasing sales revenue but still faces adverse profit variances.What is a possible reason?

Budget for raw materials at £5,000 per month. However, the actual cost in January was £5,700, type of variance?

A business aims to expand internationally. Why might it be difficult to set an accurate budget for its first year?

A start-up business is setting its first budget. Why might it struggle more than an established firm?

If a company uses flexible budgeting, what does this mean?

A hotel chain decides to use zero-based budgeting for its new financial year. The characteristic of this approach?

A business is too focused on meeting its budget targets and avoids spending in innovation. What is a potential long risk

A restaurant’s budgeted revenue for February is £50,000, but actual revenue is £58,000. What is the revenue variance?

A tech company has an adverse variance in research and development costs. What is a positive outcome of this situation?