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Budgeted profit is the projected amount of profit a company expects to earn over a specific period, based on its budgeted revenues and expenses. It serves as a financial target and is often used for planning and performance evaluation. This figure helps businesses assess their financial health and make informed decisions regarding operations and investments. Budgeted profit is typically calculated using historical data, market analysis, and strategic goals.
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What is the difference between budgeted profit and actual profit?
Budgeted Profit is the one which a company's financial analysts expect to have in a particular period of time (e.g one year) in the future and Actual Profit is the profit which is actually earned by the company. David Morson http://www.activetrader-links.com/
What is the difference between a cash budget and a budgeted profit and loss account?
Cash budget estimates the cash inflows and outflows and net cash available for specific period while budgeted profit and loss is the estimated statatement for planning purpose before actual activity starts.
What does a budgeted income statement consist of?
budgeted depreciation
Can a spreadsheet be used to prepare a budgeted profit and loss account?
Yes, a spreadsheet can be effectively used to prepare a budgeted profit and loss account. It allows for easy organization and manipulation of financial data, enabling users to input projected revenues and expenses. Additionally, spreadsheets can perform calculations automatically, making it simple to analyze different scenarios and adjust figures as needed. This flexibility and functionality make spreadsheets a popular tool for budgeting purposes.
How do you get budgeted sales?
Budgeted sales are estimated sales dependant on marketing research studies or past customer demands.
What causes the difference between actual and budgeted gross profit?
Budgeted gross profit is the expected profit amount before the start of production run while actual gross profit is the actual amount of profit which company earns after the production and sales of product.
What is the difference between budgeted profit and actual profit?
Budgeted Profit is the one which a company's financial analysts expect to have in a particular period of time (e.g one year) in the future and Actual Profit is the profit which is actually earned by the company. David Morson http://www.activetrader-links.com/
What is the difference between a cash budget and a budgeted profit and loss account?
Cash budget estimates the cash inflows and outflows and net cash available for specific period while budgeted profit and loss is the estimated statatement for planning purpose before actual activity starts.
What is the reason for multiplying the sales quantity variance by the budgeted sales price even if the actual sales volume was sold at a different price?
for profit.........
What does a budgeted income statement consist of?
budgeted depreciation
Can a spreadsheet be used to prepare a budgeted profit and loss account?
Yes, a spreadsheet can be effectively used to prepare a budgeted profit and loss account. It allows for easy organization and manipulation of financial data, enabling users to input projected revenues and expenses. Additionally, spreadsheets can perform calculations automatically, making it simple to analyze different scenarios and adjust figures as needed. This flexibility and functionality make spreadsheets a popular tool for budgeting purposes.
How do you calculate the achievement when a loss is budgeted and actual loss is more than that?
To calculate the achievement when the actual loss exceeds the budgeted loss, you first determine the difference between the budgeted loss and the actual loss. If the actual loss is greater, it indicates a negative variance. The achievement can be expressed as a percentage of the budgeted loss, using the formula: Achievement = (Budgeted Loss - Actual Loss) / Budgeted Loss * 100. In this case, the achievement percentage would reflect a shortfall rather than a success.
How do you get budgeted sales?
Budgeted sales are estimated sales dependant on marketing research studies or past customer demands.
How would you describe a budgeted cost?
Budgeted costs are generally described as the best estimate about what should be allowed for forthcoming activity.
What is non budgetary control?
Non-Budgetary control is laying control on your non-budgeted expenses i.e those expenses which are not defined in normal budgeted expenses. The techniques for these non-budgetary control are : 1) Statistical data analysis. 2) Break-even analysis or the no profit & no-loss analysis. 3)Gantt Charts 4) PERT (Programmed Evaluation & Review Technique).
What is non-budgetary controls?
Non-Budgetary control is laying control on your non-budgeted expenses i.e those expenses which are not defined in normal budgeted expenses. The techniques for these non-budgetary control are : 1) Statistical data analysis. 2) Break-even analysis or the no profit & no-loss analysis. 3)Gantt Charts 4) PERT (Programmed Evaluation & Review Technique).
How is target costing used to price products?
traditionally cost plus procedure were used means at the time of pricing the product we accumulated the cost(direct material+direct labor+direct expenses+variable production OH+fixed production OH)that has to be incurred in order to produce the product and determined the cost per unit and then add the profit margin to reached at the selling price this method of costing is precised for its simplicity but in 1960 the concept of target costing were introduced which tells us the opposite approach as compared to the traditional costing in target costing we starts from the market survey and determine at what selling price costumer is agree to buy the product which we want to produce after determining the selling price of the product we subtract the desired profit which we want to achieve from it(competitive selling price-desired profit=target cost) after subtracting the desired profit from the selling price we left with the cost termed as the TARGET COST. after setting of the target cost we look all the budgeted cost if budgeted cost is greater than the target cost we apply all the cost saving techniques to control the budgeted cost and keep the budgeted cost into the limits of target cost... (ANSWERED BY ARSALAN IDREES)
