Untitled Flashcards Set

Budget

A financial plan that outlines expected revenues and expenditures over a specific period.

Income Budget

Forecasts expected revenue from sales and other sources.

Expenditure Budget

Estimates business costs, including fixed and variable costs.

Profit Budget

Calculates expected profit by subtracting costs from revenue.

Variance Analysis

The process of comparing actual performance to budgeted performance, identifying favorable and adverse variances.

Favorable Variance

When actual results are better than budgeted, such as higher revenue or lower costs.

Adverse Variance

When actual results are worse than budgeted, such as lower revenue or higher costs.

Contestable Market

A market with low barriers to entry and exit, allowing new firms to easily compete.

Low Customer Loyalty

A characteristic of contestable markets where customers can easily switch to new firms.

Predatory Pricing

Pricing strategy where existing firms cut prices to drive out new entrants.

Uses & Gratifications Theory

A theory stating that people choose news that satisfies their needs like information, entertainment, or social interaction.

Hypodermic Needle Model

A model suggesting media can directly inject ideas into a passive audience, influencing their opinions.

IPSO

Independent Press Standards Organisation, which regulates the press in the UK but is voluntary.

Digital Media's Influence on Newspapers

The decline of print newspapers due to free online news and the rise of citizen journalism.

Incremental Budgeting

Budgeting method that adjusts last year’s budget by a percentage.

Zero-Based Budgeting

Budgeting method where every expense must be justified from scratch.

Historical Budgeting

Budgeting based on previous financial data.

Market Behavior in Contestable Markets

Monopolies may behave like competitive firms to avoid new competition.

Media Plurality Issue

Concerns over few companies owning most media, reducing diverse viewpoints.