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.
Alternative budgets, also known as financial or quantitative budgets, are additional budgets created for consideration by management alongside their primary budget. These budgets reflect different policies that the organization might pursue in the future.
Budget planning is a critical managerial accounting function where future activities and operational plans of an organization are transformed into detailed budgets to forecast revenues, expenses, and financial goals.
Corporate modelling involves the use of simulation models to assist the management of an organization in planning and decision-making. A budget is a quintessential example of a corporate model.
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.
Stocks that have hit higher prices in daily trading compared to prices of the past 52-week period. These highs are typically listed in daily newspapers. Technical analysts consider the ratio between new highs and new lows in the stock market to be significant for forecasting stock market trends.
The Projection Period refers to the time duration used for estimating future cash flows and the resale proceeds from a proposed investment. Commonly used in financial analyses, it helps in forecasting and valuing investments, especially in real estate.
Terminal Value (TV) is an essential financial metric used to estimate the value of a business beyond the forecast period in a discounted cash flow (DCF) analysis.
Trend analysis involves evaluating the performance of a company or industry over a period using accounting ratios to identify patterns and forecast future performance.
Windfall gains and losses refer to unexpected increases or decreases in value arising from actual or prospective receipts that differ from initial predictions or due to changes in net present value of the receipts.
