Budget
Financial plan allocating resources for specific period (usually year).
Formula
Variance = Actual Figure − Budgeted Figure
Real World
Nike sets annual budgets for each product line — the Jordan brand receives a specific marketing spend budget that regional teams must not exceed, ensuring global costs stay controlled.
Exam Focus
Distinguish budget types in your answer; examiners reward precise use of 'revenue', 'cost', or 'cash' budget rather than 'budget' alone.
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