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.

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

Leading a revolution in banking
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Find out how Intelligent finance used finance theory to prosper 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 used finance theory to prosper in the telecommunications industry by downloading our premium case study.

Re-focussing a company's culture and marketing mix
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Find out how Argos used finance theory to thrive in the retail industry by downloading our premium case study.

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

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