BTEC Business - Expenditure
and Revenue questions and
answers
What is a budget? - answer A plan for how you will gain and use the
resources available to the enterprise
Why are budgets used? - answer - To ensure the business won't overspend
- To ensure the business reduces/eliminates its profit margins
- Effective planning (what the goals are, how resources should be used)
What is budgeting? - answer The process of forecasting future expenses
and income - preparing a budget
What is budgetary control? - answer Monitoring your performance against
the budget
What is a revenue/sales budget? - answer Something that shows how
much money will come into the business
What does a revenue/sales budget include? - answer - Sales units (the
number of units of your product that will sell)
- Price per unit (the amount charged for each individual product sold)
- Total sales (amount you make from sales)
How do you calculate total sales? - answer Sales units x price per unit
What is a production budget used for? - answer used to identify the
number of goods that need to be produced during a certain period in order
to meet the budgeted sales.
and Revenue questions and
answers
What is a budget? - answer A plan for how you will gain and use the
resources available to the enterprise
Why are budgets used? - answer - To ensure the business won't overspend
- To ensure the business reduces/eliminates its profit margins
- Effective planning (what the goals are, how resources should be used)
What is budgeting? - answer The process of forecasting future expenses
and income - preparing a budget
What is budgetary control? - answer Monitoring your performance against
the budget
What is a revenue/sales budget? - answer Something that shows how
much money will come into the business
What does a revenue/sales budget include? - answer - Sales units (the
number of units of your product that will sell)
- Price per unit (the amount charged for each individual product sold)
- Total sales (amount you make from sales)
How do you calculate total sales? - answer Sales units x price per unit
What is a production budget used for? - answer used to identify the
number of goods that need to be produced during a certain period in order
to meet the budgeted sales.
