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Zero-based budgeting is an approach to planning and decision-making which reserves the working process of traditional budgeting

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Zero-based budgeting is an approach to planning and decision-making which reserves the working process of traditional budgeting

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James McCullough

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The Formula for Profit is -  Total Revenue - Cost = Profit

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The Formula for Profit is -  Total Revenue - Cost = Profit

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HEBE MAHON

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Revenue is the money that comes into the business from goods and sales - Sian Irvine:) 

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Revenue is the money that comes into the business from goods and sales - Sian Irvine:) 

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Fixed costs are costs that do not change monthly or annually, they stay the same. This includes rent for the building.  

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Fixed costs are costs that do not change monthly or annually, they stay the same. This includes rent for the building.  

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- Rory

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Fixed costs, do not change based on the number of customers a business has they remain the same, even if the number of customers increases or decreases hence the name ''Fixed Costs''.

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variable costs are the costs that change depending on the amount of customers coming into the business

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variable costs are the costs that change depending on the amount of customers coming into the business

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Variance is the difference between the allocated budget and what they actually spend

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Variance is the difference between the allocated budget and what they actually spend

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Contribtion is the difference between sales and variable costs of production

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profit sales x 100

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The formula for contribution is, total sales - variable costs

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The formula for contribution is, total sales - variable costs

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Variable Costs are when prices for a business change depending on how many customers they recieve. an example would be, one month a hair salon will pay £50 for their shampoo and conditioner but if the customers for the salon increased then the prices would decrease and becomje £15

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An allocated budget is a method of allocating funds as they become available into individual categories from which expenses are paid, as opposed to balancing a common pool into which income is deposited and from which expenditures are withdrawn in a reactionary manner

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The margin of safety is the amount of money made between the break even point and the profits

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break even occurs when costs=revenue and then a business starts

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break even occurs when costs=revenue and then a business starts

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to make a profit