Finance illustration Finance theory

The personal budget

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.


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 employed finance theory to prosper in the logistics industry by downloading our premium case study.

Innovation in infant nutrition
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Learn how Cow & Gate used finance theory to thrive in the food & drink industry by downloading our premium case study.

The marketing mix in the food industry
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Find out how McCain Foods employed finance theory to succeed in the food & drink industry by downloading our premium case study.

Meeting customers' needs
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Learn how Travis Perkins employed finance theory to prosper in the construction industry by downloading our premium case study.

Creating the right marketing mix
Motorola logo

Find out how Motorola applied finance theory to thrive in the telecommunications industry by downloading our premium case study.

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