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Budget
A financial plan that estimates income and expenses over a specific period, guiding decision-making and resource allocation.
Cost Center
A department, function, or segment within an organization that incurs costs but does not directly generate revenue. Examples include HR and IT departments.
Favourable Variances
These occur when actual revenue exceeds budgeted revenue or when actual costs are lower than budgeted costs, leading to improved profitability.
Profit Centers
A division or unit of a business responsible for generating revenue and profit, such as a sales department or product line.
Stakeholders
Stakeholders are individuals or groups who are affected by or have an interest in a business's activities.
Variances
The difference between budgeted (planned) figures and actual financial performance, which can be either favourable or adverse.