Budgeting Basics and Beyond

Glossary of Budgeting and Planning Terms

Active Financial Planning Software

Budgeting and planning software that includes applications and the new level of functionality that combine budgeting, forecasting analytics, business intelligence, and collaboration. Finance managers can use these robust, Web-enabled programs to scan a wide range of data, radically speed up the planning process, and identify managers who have failed to submit budgets.

Administrative Budget

A formal and comprehensive financial plan through which management can control day-to-day business affairs and activities.

Allotment

Part of an appropriation that may be encumbered or expended during an allotment period, which is usually less than one fiscal year. Bimonthly and quarterly allotment periods are most common.

Analysis of Variances

Analysis and investigation of causes for variances between standard costs and actual costs. It is also called variance analysis. A variance is considered favorable if actual costs are less than standard costs. It is unfavorable if actual costs exceed standard costs.

Annual Budget

A budget prepared for a calendar or fiscal year. See also Long-range Budget.

Balanced Budget

A budget in which total expenditures equal total revenue. An entity has a budget surplus if expenditures are less than tax revenues. It has a budget deficit if expenditures are greater than tax revenues.

Balanced Scorecard

A set of performance assessed across a four balanced set of dimensions (financial, ...