NOTE TAKING GUIDE - KEY:
Topic # 4056
BUSINESS MANAGEMENT AND MARKETING
ACCOUNTING/ECONOMIC PRINCIPLES
Nadene Blakeley
Budget:
- a system to record revenues (profit) and expenses (costs) for continuous financial
record keeping
- a method of comparing actual results with anticipated results
Income Statement:
- helps you assess the overall profitability of your operation
- determines the viability of individual parts of your business
Revenues:
- the money or income produced by a given source (Sales)
Expenses:
- a cost requiring payment (Cost of equipment or labor)
Fixed: an expense that is constant over the period of your budget
Variable: an expense that changes with the level of business
Cash flow budget:
- adjusts the income statement for any non-cash income items
Enterprise budget:
- an estimate of receipts (income), costs and profitability
Partial budget:
- used for testing new ideas or accessing whether an idea is suitable for your situation
(1) added revenues expected
(2) reduced costs
(3) reductions in revenue that could occur
(4) added costs to expect
Whole farm budget:
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