Budgeting helps businesses plan their finances by allocating resources effectively and ensuring financial stability.
A budget variance report compares actual financial performance against budgeted figures to assess discrepancies.
Cost control ensures businesses minimize unnecessary expenses and maximize profitability while maintaining efficiency.
Forecasting helps businesses predict future financial trends, ensuring they allocate resources effectively and manage risks.
Fixed costs remain constant regardless of production levels, while variable costs fluctuate with business activity.
Zero-based budgeting requires each expense to be justified from the ground up, rather than being based on previous budgets.
