5. Do variable costs remain unchanged whatever the level of output?
6. What are the direct costs related to?
7. What do indirect costs include?
8. What do overheads mean?
9. What are the assets?
10. How are fixed assets distinguished from the current assets?
11.What are the liabilities?
12.How are the liabilities classified?
13. What is the difference between long-term liabilities and current liabilities?
Unit 34. Budgeting
Active vocabulary
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budgeting motivate operating plan anticipate primary performance framework fiscal year master budget control device entire business |
складання бюджету спонукати виробничий план очікувати, передбачати основний, найважливіший виконання рамки, межа, структура бюджетний рік, фінансовий рік головний бюджет стандартний план діяльності бізнесу контрольний засіб цілий бізнес |
The preparation of a budget is an important aspect of a company’s success. The preparation of it helps management to establish short-term and long-term goals and standards for the company, motivates employees to achieve company goals, provides for a systematic review of performance. The success of the budgeting process depends on the cooperation of all employees.
Budget of a business is the financial operating plan for an organization for a fixed period. The budget shows income is anticipated and how the resources will be used during the budget period. It is a forecast used by a business to plan and control.
The primary objective of the budget is to establish a financial framework for the operations of the business. The accounting period for the budget is usually either the calendar year or the fiscal year. The fiscal year is any chosen twelve-month period that does not correspond to the calendar year.