Category:Budgeting

From Eurêka

Budgeting

Budget Money and resources designated for a specific activity.

1. Financial budget Detailed estimate of how much an organization expects to spend in a given period and where the money will come from.
2. Operating budget Estimate of the amount and costs of goods and services an organization expects to consume.
3. Flexible budget Multiple contingency plan that provides for different amounts of income and expenses as a result of different levels of production or sales.
4. Zero-based budgeting (ZBB) Determining a budget by starting from zero every year and justifying each expense for the upcoming year.

Overrun

Overrun Costs beyond those budgeted for.

Fudge Extra money built into a budget as a contingency against likely cost overruns or as added profit.

1. Fudge factor Number by which base figures are increased to reflect contingencies.

Expensed Paid for out of a specific budget, sometimes over a period of time.

Expendable Budget item that can be used, deleted or discarded without hurting the end product or the organization’s viability.

Contingency fund Money set aside to be used in the event of a specific unforeseen need, such as an emergency.

1. Cash reserve Cash that is not needed immediately, but kept on hand for unexpected circumstances.