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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/
How do you calculate and interpret the profit variance?
Profit variance is calculated by subtracting the actual profit from the budgeted or expected profit. This can be expressed as: Profit Variance = Actual Profit - Budgeted Profit. A positive variance indicates that the actual profit exceeded expectations, suggesting better performance, while a negative variance indicates underperformance. Analyzing these variances helps identify areas for improvement and informs future budgeting and operational decisions.
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.
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 would you describe a budgeted cost?
Budgeted costs are generally described as the best estimate about what should be allowed for forthcoming activity.
