Finance illustration Finance theory

Budgeting

A budget is a plan, which is set out in numbers. It sets out figures that an organisation like a company hopes to achieve in the future. For example, a company like Kraft will create budgets for:

Budgeted sales

Budgeted production figures

Budgeted costs, etc.

Here is a sales, costs and profits budget for the supply of chocolate eggs in the six months leading up to Easter:


Note that the actual figures achieved by the company may be different from the budgeted ones. For example sales figures may be £20,000 because demand is less than expected. However, costs may be the same because the firm may have already produced £12,500 worth of eggs to sell. If that were the case then actual profit would only be £7,500, which would be really short of the budgeted figures.

A budget is a plan for the future set out in numbers dealing with quantities such as sales, costs and production.


Glossary »

Supporting Documents

These downloads will help to put finance theory into context using real world examples from real businesses.

Using the marketing mix to drive change
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Learn how Parcelforce Worldwide applied finance theory to prosper in the logistics industry by downloading our premium case study.

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Find out how Argos employed finance theory to prosper in the retail industry by downloading our premium case study.

Sponsorship as part of the marketing mix
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Find out how Ford applied finance theory to thrive in the automotive industry by downloading our premium case study.

Planning effective marketing strategies for a target audience
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Learn how adidas employed finance theory to prosper in the sportswear industry by downloading our premium case study.

Leading a revolution in banking
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Learn how Intelligent finance applied finance theory to thrive in the financial services industry by downloading our premium case study.

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