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IB Diploma · Business Studies · Chapter 21
Ch 21 3.9 Budgets (HL): complete notes
Neat, exam-ready notebook-style notes for Ch 21 3.9 Budgets (HL), following the IB Diploma syllabus, SL and HL. This chapter is part of the complete Business Management Notes for IB Diploma Students (SL and HL): All 36 Topics.
Free preview: Ch 21 3.9 Budgets (HL) notes
A quick look at the chapter from our IB Diploma Business Studies notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.
Topics in this chapter
- What you must be able to do
- What is a budget? AO2
- Cost centres and profit centres
- Roles of cost and profit centres AO2
- Constructing a budget AO2 AO4
- Where do the figures come from?
- Revising a budget when the plan changes AO2 AO4
- Approaches to setting budget figures
- Variances AO2 AO4
- Analysing and acting on variances AO2
- Why budgets and variances matter for decisions AO2
- Business management tools in this topic
“I can” checklist: what you must be able to do
- I can distinguish cost centres from profit centres and explain the roles of each.
- I can construct a budget for revenue, costs and profit from given data.
- I can revise a budget when assumptions change and describe the effect on profit.
- I can calculate variances in amount and percentage and label them favourable or adverse.
- I can explain possible causes of variances and suitable management actions.
- I can explain how budgets and variances support decision-making.
- I can evaluate the benefits and limitations of budgets and reach a judgement for a given business.
- I can use contribution, absorption costing, descriptive statistics and SWOT in a budgeting context.
What is inside the full chapter notes
- Concept notes with 9 worked examples (all numbers computed)
- Diagrams of cost and profit centres and of variances
- Tool boxes (absorption costing, contribution, descriptive statistics, SWOT)
- Common mistakes and a "How to score" command-term box
- 12 Quick-check questions A-D, explained
- Paper 1 style case with mark scheme and a 10-mark question
- Paper 2 style quantitative question with mark scheme
- Quick reference and "I can" checklist
What you get in the pack
- All 36 topics of IB Diploma Business Management for students taking Standard Level or Higher Level (first assessment 2024): what a business is, business entities, objectives, stakeholders, growth, multinationals, human resource management, organizational structure, leadership, motivation, culture, communication, industrial relations, sources of finance, costs and revenues, final accounts, ratio analysis, cash flow, investment appraisal, budgets, marketing planning, sales forecasting, market research, the seven Ps, international marketing, operations methods, lean production, location, break-even analysis, crisis management, research and development, management information systems
- Every syllabus statement covered in order, each marked SL or HL, with clear notes, tables and diagrams drawn for these notes
- Worked examples in every topic: calculations and model answers that show how to earn the marks
- Quick-check multiple-choice questions with explained answers, plus original Paper 1 (case study), Paper 2 (quantitative) and, for HL, Paper 3 (social enterprise) style questions with full mark schemes (no past-paper reprints)
- Common mistakes and a how-to-score command-term guide for every topic
- Quick-reference sheet and an "I can" checklist at the end of every topic
- Colour PDF and a black and white copy of every chapter for printing
- Independent notes for IB Diploma students; not endorsed by or affiliated with the International Baccalaureate Organization (IBO)
All chapters in this pack
- Ch 1 1.1-1.2 The nature of business and types of business entity
- Ch 2 1.3 Business objectives
- Ch 3 1.4 Stakeholders
- Ch 4 1.5 Growth and evolution
- Ch 5 1.6 Multinational companies (MNCs)
- Ch 6 2.1 Introduction to human resource management
- Ch 7 2.2 Organizational structure
- Ch 8 2.3 Leadership and management
- Ch 9 2.4 Motivation and demotivation
- Ch 10 2.5 Organizational (corporate) culture (HL)
- Ch 11 2.6 Communication
- Ch 12 2.7 Industrial and employee relations (HL)
- Ch 13 3.1 Introduction to finance
- Ch 14 3.2 Sources of finance
- Ch 15 3.3 Costs and revenues
- Ch 16 3.4 Final accounts
- Ch 17 3.5 Profitability and liquidity ratio analysis
- Ch 18 3.6 Efficiency ratio analysis (HL)
- Ch 19 3.7 Cash flow
- Ch 20 3.8 Investment appraisal
- Ch 21 3.9 Budgets (HL)
- Ch 22 4.1 Introduction to marketing
- Ch 23 4.2 Marketing planning
- Ch 24 4.3 Sales forecasting (HL)
- Ch 25 4.4 Market research
- Ch 26 4.5 The seven Ps of the marketing mix
- Ch 27 4.6 International marketing (HL)
- Ch 28 5.1 Introduction to operations management
- Ch 29 5.2 Operations methods
- Ch 30 5.3 Lean production and quality management (HL)
- Ch 31 5.4 Location
- Ch 32 5.5 Break-even analysis
- Ch 33 5.6 Production planning (HL)
- Ch 34 5.7 Crisis management and contingency planning (HL)
- Ch 35 5.8 Research and development (HL)
- Ch 36 5.9 Management information systems (HL)