Business and Budgeting Concepts

Flashcards covering key vocabulary and concepts related to business operations, budgeting, and strategic management.

Add value

To increase the worth of a product or service, often through additional features or enhancements.

Milk powder

A concentrated, dehydrated form of milk used in various food products, often identified as a commodity.

Budget

A financial plan that outlines projected income and expenditures over a specific period.

Zero basis budgeting

A budgeting approach where all expenses must be justified for each new period, starting from a 'zero' base.

B Corporation

A form of business that offers social and environmental benefits alongside profit, adhering to higher standards of transparency and accountability.

Incremental budgeting

A budgeting method that uses the previous year's budget as a base and makes incremental adjustments.

Cash budget

A budget that estimates cash inflows and outflows over a specified period, emphasizing liquidity management.

Performance measure

A metric used to assess how well an organization or department is achieving its goals.

Responsibility accounting

An accounting system that segments financial data by specific managerial responsibilities.

Continuous improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time.

Operational budget

A budget outlining the planned revenues and expenses for the daily operations of the organization.

Stakeholder

Any individual, group, or organization that has an interest in the decisions and actions of a business or project.

Market share

The portion of a market controlled by a particular company or product.

Variable costs

Costs that vary directly with the level of production or sales.

Fixed costs

Costs that do not change with the level of production or sales, such as rent or salaries.

Cash flow

The total amount of money being transferred in and out of a business.

Strategic planning

The process of defining a business's strategy or direction and making decisions on allocating resources to pursue that strategy.

Forecasting

The process of estimating future trends based on historical data and analysis.