Special Terms in Budgeting

Budget : The financial operating plan or forecast for an organization for a fixed period. The budget shows what income is anticipated and how the resources will be used during the budget period.

Master Budget : The total of separate budgets from different department whithin a company  that shows in  detail how entire business operates.

Financial forecast : an estimation of what will probably happen in the future, based on past and present fiscal records.

Control Device : Astandard plan for the performance  of a business by which  its operations my be measured and regulated.

Retail Trade Business : A business that acquires goods to sell to the general public. A wholesale business is a middleman operation that acquires goods from manufacturer and then sells them in turn to the retailer.

Retaile Outlet : A unit of the retaile business, usually a store.

Unit Price : In the context of retailing, the price at which a single item is sold to the buyer.

Sales Mix : The inventory of items available for sale.

Geographical Breakout : Organization of a business on the basis of location.

Allowances : Special terms of sale granted to specified customers.

Discount : A reduction in the price of an item for sale.

Inflationary Period : A period of rising prices in which more money becomes available in relation to fewer goods.

Recession : A period of reduced general economic activity market by a decline in employment, profits, production, and sales.

Inventory : In retailing, tangible property either held for sale or to be consumed in the sale of goods.

Lead Time : The time that elapses between ordering and displaying merchandise.

General and Administrative Expenses : Such expenses as employees’ and officers’ salaries’ utility bills, payroll, taxes, stationery, and office supplies.

Break –even Point : Minimum volume of sales a company needs to enable it to function as a going concern whitout realizing a profit or incurring a loss.

Going Concern : A business enterprise that is operating with enough equity so that it does not have to discontinue operations in the near future.

Accrual Basic : The method of keeping accounts, that recognizes income when earned and expenses when incurred regardless of when cash is received or disbursed.

Obligations Outstanding : Unpaid or unmet obligations, usually debts.

Collectible Receivables : Goods sold for which the firm has not been paid, but which it is reasonably sure of collecting.

Cash Flow : The predicted pattern  of actual cash to be received  by a business for its services or goods and payments to be made for merchandise and services over a specific accounting period. It is, in other words, the cash that will be available to the company during the accounting period.

post by : Rony Sutiyanto