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.

Re-focussing a company's culture and marketing mix
Argos logo

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

The marketing mix in the food industry
McCain Foods logo

Find out how McCain Foods used finance theory to prosper in the food & drink industry by downloading our premium case study.

Positioning the brand
Chap Stick logo

Find out how Chap Stick used finance theory to prosper in the healthcare industry by downloading our premium case study.

Sponsorship as part of the marketing mix
Ford logo

Find out how Ford applied finance theory to prosper in the automotive industry by downloading our premium case study.

Live, breathe and wear passion
Diesel logo

Find out how Diesel employed finance theory to succeed in the fashion industry by downloading our premium case study.

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