CONTROL PRESUPUESTARIO 1/3 - Presupuesto Previsto, Final y Desviación Total

Summary

This video delves into the concept of budgets, explaining the difference between planned and actual budgets, and the significance of total deviation. Budgets are crucial for planning and controlling a company's financial goals. The planned budget outlines the company's financial objectives, while the actual budget reflects the real outcomes. Total deviation measures the difference between these two, which can be influenced by changes in activity levels, costs, or sales composition. The video illustrates how to calculate total deviation and provides an example to clarify the concept, emphasizing that a positive deviation doesn't always indicate good news and that further analysis is necessary.

Takeaways

• 💡 Budgets are the monetary expression of plans a company intends to carry out over a specific period.
• 📊 Budgets serve as both planning and control instruments, helping companies set financial objectives and compare them to actual outcomes.
• 🔍 A planned budget (expected budget) is a company's forecast of revenue, costs, and production for the year.
• 📈 The real budget is reviewed at the end of the year to see what actually happened in terms of revenue, costs, and sales.
• 📉 The total variance refers to the difference between the planned budget and the real budget.
• 📊 Variances can arise due to changes in activity levels, costs, or sales composition.
• ⚖️ The total variance is calculated by subtracting the planned budget from the real budget.
• ✅ A positive variance means the actual result exceeded the planned budget, which is generally good news.
• ❌ A negative variance indicates that the actual result was worse than the planned budget, generally signaling bad news.
• 🔢 Variances need deeper analysis as they may hide underlying causes, which will be further explained in future content.

Q & A

What are budgets in the context of business planning?

Budgets are the monetary expression of the plans a company intends to carry out over a certain period. They serve as both a planning tool, outlining the financial objectives, and a control tool, allowing for comparison between planned and actual outcomes.

What is the difference between a planned budget and an actual budget?

A planned budget is a forecast of how the business year will unfold, including expected sales prices, costs, and production volumes. An actual budget reflects what truly happened by the end of the year, showing the actual sales prices, costs, and units sold.

What is meant by 'total deviation' in budgeting?

Total deviation is the difference between the actual budget and the planned budget. It is calculated by subtracting the planned budget from the actual budget, and it can be caused by changes in activity levels, costs, or sales composition.

How can changes in activity levels affect the total deviation?

Changes in activity levels can affect total deviation by causing a company to sell more or less than initially planned, which can lead to a difference between the planned and actual outcomes.

What role do changes in costs or prices play in the total deviation?

Changes in costs or prices can lead to a total deviation if the actual costs or prices differ from what was budgeted, affecting the financial results compared to the initial plan.

How does the composition of sales impact the total deviation?

The composition of sales can impact total deviation if the mix of products sold differs from the planned mix, which can affect the overall profitability and result in a deviation from the planned budget.

What does a positive total deviation indicate?

A positive total deviation indicates that the actual result is better than what was budgeted. For example, if the budgeted result was 10 and the actual result was 12, it suggests that the company performed better than expected.

What does a negative total deviation signify?

A negative total deviation signifies that the actual result is worse than what was budgeted. For instance, if the budgeted result was 15 but the actual result was 10, it indicates underperformance compared to the planned budget.

Why might a small total deviation not be significant despite being positive?

A small positive total deviation might not be significant because it only indicates a slight improvement over the planned budget. It does not necessarily reflect the overall health or performance of the company and could be due to minor fluctuations or one-time events.

What is the purpose of calculating the results of the planned and actual budgets?

Calculating the results of the planned and actual budgets helps in understanding the financial performance of the company against its goals. It provides insights into where the company excelled or fell short and can guide future planning and decision-making.

Why is it important to analyze the reasons behind budget deviations?

Analyzing the reasons behind budget deviations is crucial for understanding the underlying factors affecting the company's performance. It helps in identifying areas of strength and weakness, making informed decisions, and adjusting strategies to improve future outcomes.