Budget selling price/overhead?

What is budget? Budget is to forecast the income and expenditure in a specified future period of time, say 3 months, half-year and 1-year.

Based on this budget, the manager can have their planning to achieve the target. This is for management accounting not for booking keeping / financial accounting.

Actual overhead is the actual figure. When it become actual, it is for financial accoutning and booking keeping. If the actual is different from the buget overhead cost, the manager is required to find out why there has difference and take any remedial action for future planning.
Budget unit selling price is also for estimation only. Similar to overhead mentioned above.


2010-11-05 22:53:58 補充：
budget unit selling price & budget overhead adsorption rate are also related to budget and have same featues

e.g. budget unit selling price is $10 and expect to sell them with quantity 10. the total expected sales are 100. However, it can actually sell the product by $9, i.e. actual selling price.

2010-11-08 23:36:30 補充：
actual price > budget price
-> underestimate the price during budget or other factors affecting the company to set a higher actual price, e.g. increase in demand

actual price < budget price
-> other factors affecting the company to set a lower actual price, e.g. decrease in demand