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A financial plan for a defined period, often one year, that quantifies future financial plans and actions. Importance: Essential for financial planning and control.

Costs that do not fluctuate with changes in production level or sales volume. Importance: Necessary for calculating break-even point and pricing strategies.

Costs that vary directly with the level of production or sales volume. Importance: Helps in analyzing the profitability and cost management.

A detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period. Importance: Assists in the daily management and planning of a business.

A budget for investments in major assets such as plant, equipment, or property, that will affect the company's long-term operations. Importance: Critical for strategic planning and long-term growth.

An estimation of the cash inflows and outflows for a business or individual for a specific period of time. Importance: Vital for ensuring adequate cash flow and liquidity.

The projection of achievable sales revenue, based on historical sales data, market analysis, and anticipated market changes. Importance: Serves as a foundation for the company's overall budgeting process.

A comprehensive financial plan made up of several smaller, detailed budgets that represent a company's financial and operational goals. Importance: It coordinates all aspects of the organization's financial planning.

The difference between what was budgeted and the actual measured value. Importance: Helps in evaluating performance and making necessary adjustments.

The point at which total costs and total revenue are equal, resulting in no net loss or gain. Importance: Critical for understanding the financial viability of a product or service.

A budgeting method where all expenses must be justified for each new period, starting from a 'zero base'. Importance: It promotes efficient resource allocation.

A budget that adjusts or flexes with changes in volume or activity. Importance: It accommodates changing business conditions and provides more accurate budgeting.

A type of budget that continuously updates by adding a new budget period as the most recent budget period is completed. Importance: Ensures that the budget is always current, reflecting the latest data and trends.

The intentional under-estimation of revenues or over-estimation of expenses when preparing a budget. Importance: Can lead to more easily achievable targets but may also encourage wasteful spending.

The process of making predictions of future based on past and present data and analysis of trends. Importance: Critical for informed budgeting, planning, and decision-making processes.

A budget that reflects the input of resources and the output of services for each unit of an organization. Importance: Emphasizes deliverables and outcomes, making the budget process more result-oriented.

A budgeting approach that uses last year’s budget as a basis with incremental amounts added for the new budget period. Importance: Conducive to stable environments but may perpetuate inefficiencies.

The quantitative investigation of the difference between actual and planned behavior. Importance: Allows an organization to understand the reasons behind budgetary differences and take corrective actions.

A budget format where each expense is itemized in a line by itself. Importance: Provides simplicity and clear visibility into where funds are allocated.