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

Marc Perez | Digital Marketing & Social Media

10 May 201504:59

Summary

TLDRThis 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.

Outlines

00:00

💼 Understanding Budgets: Planned vs. Actual

This paragraph introduces the concept of budgets as a monetary expression of a company's plans for a specific period. It highlights that budgets serve dual purposes: as a planning tool to outline business objectives and as a control mechanism to compare planned objectives with actual outcomes. The paragraph explains the difference between a planned budget, which is an initial forecast of sales, costs, and production, and the actual budget, which reflects the real figures at the end of the year. It also introduces the idea of total deviation, which is the difference between the planned and actual budgets, and can be caused by changes in activity levels, costs, or sales composition.

Mindmap

Keywords

💡Budget

A budget is a financial plan that outlines an organization's income and expenses over a specific period. In the video, the budget is described as a monetary expression of a company's plans for a certain period, serving as both a planning tool and a control instrument. It is used to set financial goals and to measure actual performance against these goals.

💡Planned Budget

The planned budget refers to the initial financial forecast made at the beginning of a period, outlining expected revenues, costs, and production volumes. In the script, it is mentioned as the starting point for a company's financial expectations, setting the stage for what the company anticipates in terms of sales, costs, and overall performance.

💡Actual Budget

The actual budget reflects the real financial outcomes after a period has ended. It is compared to the planned budget to assess performance. The video script explains that at the end of the year, the actual budget is reviewed to see how the company's financial reality aligns with the initial forecasts, considering changes in sales prices, costs, and the number of units sold.

💡Total Deviation

Total deviation is the difference between the actual budget and the planned budget, indicating how well the company's financial planning matched the actual results. The video script describes it as the result of subtracting the planned budget from the actual budget, with the sign of the deviation indicating whether the actual outcome was better or worse than planned.

💡Activity Level

Activity level refers to the volume of business operations, such as the number of units sold. Changes in activity level can affect the total deviation by causing the actual sales to be higher or lower than initially planned. The script mentions that one reason for total deviation could be selling more or less than what was planned.

💡Costs

Costs are the expenses incurred by a company in the course of its operations. In the video, costs are highlighted as a factor that can change from the planned budget, potentially causing a total deviation if actual costs differ from the planned costs.

💡Sales Prices

Sales prices are the prices at which a company sells its products or services. The video script notes that changes in sales prices can lead to total deviation if the actual prices at which products are sold are different from what was anticipated in the planned budget.

💡Sales Volume

Sales volume is the quantity of products or services sold by a company. The video explains that changes in sales volume, such as selling more or fewer units than planned, can lead to a total deviation between the planned and actual budgets.

💡Composition of Sales

The composition of sales refers to the mix of products or services that make up a company's sales. The video script suggests that changes in the composition of sales, such as selling different products than initially planned, can also lead to total deviation.

💡Financial Performance

Financial performance is the assessment of how well a company is managing its financial resources. The video uses the concept of financial performance to discuss how the actual results compare to the planned budget, with the total deviation indicating whether the company has met or missed its financial targets.

💡Control Instrument

A control instrument is a tool used to monitor and manage performance. In the context of the video, the budget serves as a control instrument by allowing the company to compare its planned financial outcomes with the actual results, thus providing a means to assess and control financial performance.

Highlights

Budgets are the monetary expression of a company's plans for a specific period.

Budgets serve as both planning and control instruments.

As a planning tool, budgets represent the financial goals a company aims to achieve.

As a control tool, budgets allow for comparison between planned and actual outcomes.

The budget forecast is an initial estimate of how the business year will unfold.

The real budget is assessed at the end of the year to reflect actual business performance.

Total deviation is the difference between the forecast and real budgets.

Deviation can occur due to changes in activity level, costs, or sales composition.

Constructing total deviation involves subtracting the forecast budget from the real budget.

The sign of the deviation indicates whether the actual result is better or worse than forecasted.

A positive deviation suggests the actual result is better than the forecasted one.

A negative deviation indicates the actual result is worse than what was budgeted.

Behind deviations, there are many factors that need to be understood.

An example is provided to illustrate how to calculate total deviation with actual figures.

The example shows a total deviation of 2.5, which is a positive deviation.

A positive deviation in the example suggests better-than-expected results, but it hides complexities.

The video concludes with a teaser for the next video, which will explain budget variances in more detail.