Activity-Based Budgeting (ABB) is a budgeting method where budgets are prepared by identifying and analyzing activities that incur costs in an organization and then allocating resources based on the anticipated performance and necessity of those activities.
Break-Even Analysis is a financial analysis that identifies the point at which expenses equal gross revenue, resulting in neither profit nor loss. It is a crucial tool for businesses to determine the minimum sales volume required to avoid losses.
A control period is the span of time for which budgeted figures are compared with actual results. Splitting up the financial year into control periods makes control of the financial figures more manageable.
Forecast Reporting involves the inclusion of projected figures within a company's annual accounts and reports, such as future sales numbers, to provide an estimated vision of potential performance and growth.
Managerial accounting is the practice of using financial accounting records as basic data to enable better business planning and decision-making. It is designed to aid in decision-making, planning, and control within a business organization.
A marketability study is an in-depth analysis aimed at determining the likely sales success and marketability of a specific product for a particular client. It involves gathering data on market prices, quantities, and types of products that are currently selling.
Pro Forma refers to the presentation of financial data that adheres to a specific format and often includes hypothetical or projected numbers to provide a basis for analysis and planning.
Pro-forma financial statements are financial reports prepared in advance, containing estimates and projections to inform and guide decision-making.
A projected financial statement, often known as a pro forma financial statement, is a financial report that outlines estimates of future revenues, expenses, and profits based on historical data, expected market trends, and planned business activities.
An approach to business planning that prioritizes maximizing the value of shares for shareholders above other business objectives.
