The process of investigating any differences between budgeted figures and actual figures.
  • Variance Analysis
  • Favourable variance
  • Adverse variance
Exists when the difference between the budgeted and actual figure leads to a higher than expected profit.
  • Variance Analysis
  • Favourable variance
  • Adverse variance
Exists when the difference between the budgeted and actual figure leads to a lower than expected profit
  • Variance Analysis
  • Favourable variance
  • Adverse variance
Benefits of variance analysis
  • Can see which variable you have not estimated correctly.
  • External problems will always impact on actual performance.
  • Planning, control, coordination, communication, motivation
  • Can halt investment and stifle entrepreneurial spirit. Miss key investment opportunities.
Drawbacks of variance analysis
  • Can see which variable you have not estimated correctly.
  • External problems will always impact on actual performance.
  • Planning, control, coordination, communication, motivation
  • Can halt investment and stifle entrepreneurial spirit. Miss key investment opportunities.
Benefits of Budgeting
  • Can see which variable you have not estimated correctly.
  • External problems will always impact on actual performance.
  • Planning, control, coordination, communication, motivation
  • Can halt investment and stifle entrepreneurial spirit. Miss key investment opportunities.
Drawbacks of Budgeting
  • Can see which variable you have not estimated correctly.
  • External problems will always impact on actual performance.
  • Planning, control, coordination, communication, motivation
  • Can halt investment and stifle entrepreneurial spirit. Miss key investment opportunities.
Budget Costs 1000 Actual Costs 800
  • Favorable Cost Variance £200 (F)
  • Adverse Revenue Variance £100 (A)
  • Adverse Cost Variance £200 (F)
  • Adverse Revenue Variance £1000 (A)
Budget Revenue 2500 Actual Revenue 2400
  • Favorable Cost Variance £200 (F)
  • Adverse Revenue Variance £100 (A)
  • Adverse Cost Variance £200 (F)
  • Adverse Revenue Variance £1000 (A)
Telling your money what to do, not wondering where it went is . . .
  • a budget
  • gross income
  • assertive financing
  • cash surplus
Costs that do not change from month to month, you are obligated to pay them regardless of income variation
  • variable expenses
  • fixed expenses
  • disposable income
  • wealth
Items of value that a person owns
  • bartering
  • liabilities
  • assets
  • net worth
Costs that vary in the amount and type, depending on the choices you make
  • assets
  • liabilities
  • fixed expenses
  • variable expenses
The money you have left to spend or save after taxes and other deductions(required and optional) are taken.
  • budget deficit
  • disposable income
  • savings
  • liability
NSF stands for
  • non satisfactory financing
  • not saving fully
  • non sufficient funds
  • non surplus funds
Your budget should be as detailed as ____________
  • an infomercial for flex seal
  • blueprints for a house
  • a netflix documentary
  • instructions for a bookshelf at IKEA
Assets - Liabilities =
  • Net Worth
  • Share
  • insolvent
  • personal inventory
Highly effective people are ___________, they happen to things, everything doesn’t happen to them.
  • reactive
  • sedentary
  • proactive
  • inactive
How many attempts will it take to create a monthly budget before you start to even have a clue?
  • 1 month
  • 3 months
  • 3 years
  • 2 months
If Jackson earns $36,000 annually (NET), how much money should he be putting in savings each MONTH?
  • $3,600
  • $3,000
  • $360
  • $300
If Lauren earns $24,000 annually, her mortgage/rent payment should not exceed __________. (Hint: 35% of monthly income)
  • $375 per month
  • $700 per month
  • $2,000 per month
  • $525
Which of the following is not a function of budgeting?
  • Planning
  • Controlling
  • Motivating
  • Decision making
The term 'budgetary period' relates to:
  • A specific year for which the budget has been prepared
  • The period for which the budget is prepared
  • The subdivisions of the main budget
  • The period in which the budget is finalised
Which of the following will not appear in a cash budget?
  • Sales revenue
  • Depreciation of machinery
  • Wages
  • Machinery bought on lease
When a production budget is being prepared the quantity that needs to be produced is calculated by the following equation:
  • Budgeted sales less closing stock plus opening stock
  • Budgeted sales less opening stock
  • Budgeted sales plus closing stock less opening stock
  • Budgeted sales less closing stock less opening stock
The three principle part of master budget are:
  • Cash budget, Sales budget, production budget
  • All the production, selling and cost budgets for the organisation.
  • The budgeted income statement and the budgeted balance sheet, sales budget
  • The cash budget, the budgeted income statement and the budgeted balance sheet
A budgeting process which demands each manager to justify his entire budget in detail from beginning is
  • Master budgeting
  • Zero base budgeting
  • Annual budgeting
  • None of the above
The use of budgets to control a firm’s activities is called:
  • Budget planning
  • Budgetary control
  • Master budget allocation
  • Budget costing
Usually, the first step in the production of the master budget is the:
  • Sales forecast
  • Cash Budget
  • Production budget
  • Sales budget
Which of the following is not a section of the Cash budget?
  • Cash receipts
  • Cash excess or deficiency
  • Financing - Borrowing/Repayment
  • All of the above are a part of the Cash budget
A budget is 'accepted' by managers when they:
  • Receive the budget in writing
  • Are consulted by top management
  • Agree to it verbally
  • Relates it to their own personal objectives
Which of the following is generally the most expensive category in a person’s budget?
  • Healthcare
  • Clothing
  • Transportation
  • Housing
Sundries are things like:
  • Shampoo, deodorant, toilet paper, cleaning supplies, etc.
  • Flowers, plants, seeds, etc
  • Granola bars, tofu, organic vegetables, etc.
  • None of the above
As a rule of thumb, every family should save at least _____ months’ income in case of emergency.
ca-2 sb-1-Budgetingimg_no 94.jpg
  • Two
  • Three
  • Four
  • Six
The amount of money you take home is called your
  • Net Pay
  • Gross Pay
  • Total Pay
  • Available Pay
Taxes vary from state to state and city to city. To make it easier to factor an estimated required annual salary, figure an average of _____% is withheld from your paycheck.
  • 10
  • 15
  • 20
  • 25
The amount of money you make is called:
  • Taxes
  • Net Pay
  • Gross Pay
  • Available Pat
This many people in The United States live in poverty.
  • 40.2 Million People
  • 45.3 Million People
  • 43.5 Million People
  • 46.7 Million People
____ Percent of children live in poverty in The United States?
  • 19.9%
  • 21.8%
  • 22.4%
  • 23.2%
In budgeting which number should always be the largest?
  • Gross Income
  • Net Income
  • Taxes
  • Disposable Income
As a rule of thumb, every family should save at least _____ months’ income in case of emergency.
ca-2 sb-1-Budgetingimg_no 117.jpg
  • Two
  • Three
  • Four
  • Six
A plan for spending and saving is a
  • Budget
  • Long term Goal
  • Google Sheet
  • Spreadsheet
Allowances, wages, tips, and interest earned over time are
  • Income
  • Savings
  • Fixed Income
  • Budget
Earnings you take home after deductions are
  • Gross Pay
  • Net Pay
  • Income
  • Savings
Regular expenses you pay each month that are consistently the same amount are
  • Variable expenses
  • Flexible expenses
  • Fixed expenses
  • Budgeted expenses
Earnings before deductions are 
  • Net pay
  • Gross pay
  • Take home pay
  • Revenue
Protects you against unexpected expenses
  • Income
  • Salary
  • Savings
  • Wages
After estimating your annual income and expenses you need to divide by what number to calculate your monthly income and expenses?
  • 6
  • 12
  • 24
  • 365
An example of a variable (flexible) expense is
  • Car Insurance
  • Rent
  • Entertainment
  • Student loan payment
A plan for using your money is
  • an outline
  • your net pay
  • a budget
  • your check register
Expenses that change from month to month are 
  • Fixed expenses
  • Net Income
  • Variable expenses
  • Important expenses
An example of a fixed expense is 
  • Groceries
  • Heat for your apartment
  • Car payment
  • Entertainment
Your "take home pay" is also known as your 
  • gross pay
  • total income
  • salary
  • net pay
Clearly written financial goals are known by the acronym
  • GOALS
  • SOUND
  • SMART
  • none of these - you are making this up
Flexible expenses stay about the same each month.
  • True
  • False
Once you create a budget, it is a good idea to never change it.
  • True
  • False
The amount of money you earn that you actually take home is your 
  • gross pay
  • net pay
  • total pay
  • neat pay
You need this in your budget for long-range goals like taking a vacation.
  • Gross pay
  • net pay
  • savings
  • none of these
Choose the example that is a clearly written financial goal.
  • Save money for college for the next four years
  • pay off credit card bills for the next 6 months
  • invest in a 401k for retirement
  • establish an emergency fund of $2,000 in 5 months
Most short-term goals are based on activities over the next 
  • 1 year or less
  • 3-4 years
  • 5-10 years
  • more than 10 years
An example of a discretionary expense is
  • car payment
  • school loan
  • vacation
  • credit card bill
What is INCOME?
  • The bills you have to pay for.
  • Money that comes in or is earned.
  • Money that you have lost.
Where can you earn income from?
  • Money gifted from somebody
  • A job
  • All of the above
What is a DEDUCTION?
  • Money that is taken out of a paycheck to go to other designated sources (such as taxes or insurance).
  • Money that you must payout.
  • Money that comes in or is earned.
What are FIXED EXPENSES?
  • Money that comes in or is earned.
  • Money that is taken out of a paycheck to go to other designated sources (such as taxes or insurance).
  • Payments that are always the same amount of money; predictable.
What is a FLEXIBLE EXPENSE?
  • Payments that are always the same amount of money; predictable.
  • Payouts of money that can change; they are not always the same amount.
  • Money that is earned by working more than the usual number of hours
When making a budget, a person’s needs should come before their wants.
  • True
  • False
A financial plan is called a
  • budget
  • tax
  • allowance
  • income
What is a need?
  • Something you must have
  • Something you'd like to have
  • Something you would like to do
  • All of the above
2.The amount an employee earns once taxes and other items are deducted from his or her gross pay.
  • Budget
  • Debt
  • Gross Income
  • Net Income
7.The total amount of money an individual has earned before taxes are taken out.
  • Net Income
  • Checking Account
  • Gross Income
  • Overdraft
Preparing a budget includes
  • Income, Expenses, Saving
  • Only listing your expenses
  • Only listing your debts
  • Only listing your income
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