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.

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.

Using the marketing mix to drive change
Parcelforce Worldwide logo

Learn how Parcelforce Worldwide employed finance theory to thrive in the logistics industry by downloading our premium case study.

Meeting customers' needs
Travis Perkins logo

Discover how Travis Perkins applied finance theory to thrive in the construction industry by downloading our premium case study.

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

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

Using the marketing mix in the fashion industry
Ben Sherman logo

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

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