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A detailed projection of all expected revenue and expenses based on forecasted sales revenue during a given period, commonly one fiscal year. It is significant as it acts as a financial guide for the business to follow throughout the year.

A budget for investment in long-term assets that will be used over time to help generate profits in a business, such as renovations or new equipment. It's significant because it helps businesses plan for future investments and large expenses.

An estimate of all cash receipts and expenditures expected to occur during a certain time period. It is significant for ensuring that a business can maintain liquidity and continue operations.

A budgeting method where all expenses must be justified for each new period, starting from a 'zero base'. Its significance lies in its ability to help businesses allocate resources efficiently by scrutinizing all expenses.

The process of investigating the differences between planned financial outcomes (the budget) and actual results. The significance of variance analysis is its utility in financial management, enabling corrections and adjustments.

Expenses that do not change as a function of business activity levels, such as rent or salaries. Their significance lies in the predictability for budgeting purposes.

Expenses that vary directly with the level of business activity, such as food and beverage costs in a restaurant. They are significant in forecasting more accurate operational budgets.

The use of historical data and analysis to make informed estimates about future financial performance. Forecasting is significant for creating realistic budgets and planning for financial needs.

The calculation of the break-even point, which is the level of sales necessary for a business to operate without loss. This analysis is significant as it informs pricing strategies and operational adjustments.

A budget that adjusts to changes in the volume of activity, often used in businesses with fluctuating sales. Its significance is that it can more accurately reflect financial performance in variable conditions.

An organizational tool that lists all the accounts used by an entity to record transactions in its general ledger. It is significant as a structural basis for the budgeting process.

A metric used in the hospitality industry to indicate the percentage of available rooms or properties that are occupied at a given time. It is crucial for revenue projections and determining seasonal staffing needs.

A financial metric in the hospitality industry that measures the average price per rented room per day. It's significant for evaluating pricing strategies and performance against competitors.

A performance metric in the hotel industry calculated by dividing the total room revenue by the number of available rooms or by multiplying ADR by Occupancy Rate. It is significant for assessing overall financial performance of a property.

The amount by which a product's selling price exceeds its total variable costs. It is significant because it helps determine how much revenue contributes to fixed costs and profits.

The accounting method of allocating the cost of a tangible asset over its useful life. It is significant for budgeting because it impacts the valuation of assets and tax liability.

The financial gain obtained after deducting the cost of goods sold (COGS) from total sales revenue. It is a critical measure of a company's efficiency in using its labor and supplies.

Calculated as the income remaining after all operating expenses, taxes, and deductions are subtracted from total revenue. It signifies a company's actual profitability and its capacity to generate profit.

A profitability ratio calculated by dividing net income by revenue. It is significant because it indicates how much of each dollar earned is retained as profit.

A measure of how quickly an entity can convert its assets to cash to pay off short-term liabilities. Significant because it indicates the company's ability to meet its financial obligations.

The direct costs attributable to the production of the goods sold in a company. This includes both the cost of materials and labor used to create the product. It is significant as it is a primary component of calculating gross profit.

A financial ratio that measures a company's ability to cover fixed charges, such as interest and leases, before account for taxes and operating leases. It signifies the financial health and stability of a company.

Similar to depreciation, it's the spread of an intangible asset's cost over its expected useful life. It's significant in budgeting as it affects the valuation of intangible assets and profitability.

A performance measure used to evaluate the efficiency of an investment or compare the efficiencies of several investments. It calculates by dividing the benefit (return) of an investment by the cost of the investment.