Financial Terms
Forecasting and financial budgeting have a lot in common. A great deal of guesswork, backed up with facts, experience and a sense of history, are all combined to try and predict the future.
Budgets
Are defined as a financial plan and may be described as a realistic expression of management’s goals and objectives expressed in financial terms. Many businesses establish budgets for specific aspects of operation. Thus, there are sales budgets, cash flow budgets, capital equipment budgets, and advertising budgets among many other possibilities.
Percentages
Percentages are used to express financial ratios. These ratios are used to measure performance.
For example, a company may require that:
- The salaries and wages must be 28% of total turnover.
- The food cost must be 32% of sales.
These percentages make it easy to track performance.
Turnover
Is the total income of a business.
Business forecast
Predictions of unit sales, or expressed in monetary terms, normally based on historical data.
For example:
| 400 covers | $6 500 per day | $35 000 per month |
How to Manage Food Costing in the Catering and Restaurant Industry
How to Manage Food Costing in the Catering and Restaurant Industry
Reach your personal and professional goals
Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.
Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.
