3.9 Budgets

Assessment Objectives
The difference between cost centres and profit centres	AO1
The role of cost centres and of profit centres	AO2

• What Is a Profit Center and Cost Center for Balance Sheet Items? – a concise description of cost and profit centres and how it relates to the final accounts.

• Accounting and Finance – Cost and Profit Centres – definitions and theoretical explanation of cost and profit centres geared towards business studies in the UK.

Assessment Objectives
The importance of budgets for organisations	AO2
Variances	AO2, AO4
The role of budgets and variances in strategic planning	AO2

• What is a Financial Budget? – explaining what a financial budget and some advantages/purpose are.

• Building A Financial Budget – budgeting for small businesses.

• Budgets – Introduction – an introduction to budgets.

• Finance – contrasts budgets and cash flow forecasts.