The Financial Analysis Section of a Business Plan Should Outline

question 76

Short Answer

The financial analysis section of a business plan should outline two types of budgets - a realistic start-up budget and a(n)________ budget that projects cost forpersonnel,insurance,rent,salaries,and so on.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.

Favorable

A term used in variance analysis indicating that actual costs were lower than budgeted or standard costs, leading to higher profits.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, often leading to a negative impact on financial performance.

Raw Materials Price Variance

This variance highlights the difference between the actual cost of raw materials used in production and the standard or expected cost.