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 in the fashion industry
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Discover how Ben Sherman used finance theory to thrive in the fashion industry by downloading our premium case study.

Entering a new market with a new product
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Find out how Experian used finance theory to succeed in the financial services industry by downloading our premium case study.

Meeting customers' needs in growth markets - online gaming
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Learn how BT applied finance theory to thrive in the telecommunications industry by downloading our premium case study.

Creating the right marketing mix
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Discover how Motorola applied finance theory to succeed in the telecommunications industry by downloading our premium case study.

Protecting the marketing mix through intellectual property rights
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Find out how Intellectual Property Office employed finance theory to thrive in the public sector industry by downloading our premium case study.

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