main actor the development of a budget in
A which a staff team
1. ACTION: Title - negotiable value
representative of a proportional part of the
capital
Social of a company.
2. EVENT: Event that may occur. It is also
known as a state.
3. ASSETS: Are all those things or property
owned by an economic entity and that
They have a positive value for this one.
4. ACCUMULATION OF COSTS: Grouping of
individual costs.
5. ORGANIZATIONAL ADAPTATION:
Division of an organization into areas or
centers of
responsibility for the proper functioning of the
company where there is a clear
designation of authority and responsibility for
each individual administrator. Be
Also known as organizational structure.
6. ADMINISTRATION BY EXCEPTION:
Principle that establishes that executives of a
company must devote detailed attention to
exceptional aspects (unusual) that appear in
periodic activities (daily, weekly, monthly, ...),
leaving the necessary time for planning
aspects. That is to say, should focus on
problems or jobs that deserve attention and
overlook What is supposed to unfold well, not
forgetting the planning function.
7. ADMINISTRATION BY OBJECTIVES:
Administrative procedure that involves as
trained and assigned for it, designs a group of
objectives, goals and plans of the
subordinate to achieve them in a later period
8. AMORTIZATION: Consists of the gradual
reduction of a prepaid expense, or of a debt
through periodic payments.
9. CORRELATION AND REGRESSION
ANALYSIS: Statistical model to measure the
average amount of change in the dependent
variable that is related to a change per unit in
the quantities of one or more of the
independent variables.
10. SENSITIVITY ANALYSIS: Technique of
interpreting changes in a factor, which
basically ask how a result will change ("what
happens?") if the information forecasted
original is not reached or if a fundamental
assumption changes.
11. FLEXIBLE APPLICATION: Budget basis
that says based on the need for
there is flexibility in its budgetary application,
since they will always exist
situations that may be unpredictable, which
serve as feedback for
make subsequent adjustments.
12. CAPITAL CONTRIBUTION: Amount of
money invested in a company through the
purchase of shares or quotas shares.
13. COST ALLOCATION: The distribution of
general costs in centers of
specific responsibility Synonyms terms: Cost
accumulation, relocation
of cost, reallocation of cost, apportionment of
cost and distribution of cost.

14. CAPITAL INCREASE: Operation carried

out in order to incorporate the capital of
the company, reserves or new resources
through the issuance of securities.

15. SELF-FINANCING: Financing through the

benefits or own resources of a
company without use of the stock market or
financial intermediaries.
B
16. GENERAL BALANCE: Basic financial
statement showing the financial situation of
a company (financial composition), own
assets, debts and rights of
owners, on a certain date.

17. BASE OF ACTIVITY: Factor that

expresses or measures the activity more
accurately
Total of a responsibility center.

18. BASES FOR COST ALLOCATION: A

systematic way to relate certain costs with a
specific objective.

19. BENEFICIARY: Person to whom a good is

issued or transferred (usually a
value title).

20. BENEFITS Fruit or profit derived from an

investment.

C subscribed capital that has actually been paid.
21. QUALITY: The conformity of a product or
service with a previously standard
specified.
22. CAPACITY: Level at which a plant,
equipment, vehicle, department can be
operated
O well.
23. PRACTICAL CAPACITY: The maximum
level at which a plant can operate efficiently,
team or department, taking into account the
time to cover any eventuality
that may occur (maintenance, stoppages for
different factors, others). It represents
around 80% of theoretical capacity.
24. THEORETICAL CAPACITY: Also known
as total, maximum or ideal capacity. Is the
measurement of the maximum production
capacity of a plant, equipment or department,
100% of the time.
25. CAPITAL: It is the sum of all resources,
assets and values mobilized for the
constitution and development of a company.
26. AUTHORIZED CAPITAL: It is the capital
of the Corporation whose amount was
approved as a future goal by the General
Assembly of Shareholders.
27. WORK CAPITAL: It is the amount of
short-term resources that a
company to carry out its activities. It is
equivalent to the difference between the
current assets and current liabilities.
28. PAID CAPITAL: It is the part of the
29. SUBSCRIBED CAPITAL: It is the part of
the authorized capital that the subscribers of
Shares have been forced to pay in a certain
time.
30. CAPITALIZATION: It is the increase of
the capital paid through new issues of
Actions. Application, reinvestment and
reapplication of the results of an exercise at
Company assets.
31. FACTORY LOAD: See general
manufacturing costs.
32. INVESTMENT PORTFOLIO: Set of
securities that make up the investment of
A person or company. It is also called
investment portfolio.
33. COST CENTER: Responsibility center
where the center manager is
Only responsible for all controllable costs in
the area. Ex Department of
accounting, treasury, advertising, industrial
relations.
34. INVESTMENT CENTER. It goes beyond
the profit center, since it is also
responsible for the amount of resources
invested in Assets for the center. its
Importance in the budget lies in the "return on
investment". Ex. The
Departments of the production area.
35. RESPONSIBILITY CENTER: Part or
segment of an organization or company
whose director or boss is in charge of a
specified group of activities for which
You must answer.
36. UTILITY CENTER: The center manager is
responsible for both costs
controllable, as of the income that the center
should generate. Its main importance
in the Budgets lies in the figure of profits. Ex.
Sales department.
37. CGF: Abbreviation for general
manufacturing costs.
38. CIF: Abbreviation for indirect
manufacturing costs.
39. PLACEMENT: Sale of securities among
the public.
40. COMMERCIALIZATION: Sale of goods
without them changing their basic form.
41. COMMISSION: Amount of money that an
intermediary (commission agent) receives for
his mediation in the purchase or sale of goods
or securities.
42. COMMITTEE: Denomination given to a
person who instructs another to buy
or sell a good, paying for it a remuneration
called commission.
43. PURCHASES: Acquisition of tangible
goods (merchandise) or intangibles (services
or
rights - patents, brands-), delivering money or
other good or service in return.
44. TOTAL COMMUNICATION: Budget basis
based on a communication
complete, in two directions, vertical
communication (up and down) and
horizontal communication (lateral).
45. ACCOUNTING BY CENTERS OR
AREAS OF RESPONSIBILITY: Accounting
system
which measures the plans and actions of each
Responsibility Center.
46. CONTROL: Action that is put into practice
to achieve the proposed objectives and goals
In planning. Performance evaluation that
provides feedback on the results.
47. COORDINATION: It is the synchronization
of individual tasks in the effective work of
each division of an entity towards common
objectives, taking into account all
other divisions based on a unity of efforts.
48. MONETARY CORRECTION: Operation
aimed at updating the purchasing power of the
currency according to indices set by the
Government. Normally calculated for
readjustments of the Real Value Units UVR.
49. CORRELATION: Relationship between
two variables.
50. DIRECT OR VARIABLE COSTING:
Method of costing products in which costs
Fixed production are excluded from
capitalized costs.
51. TOTAL OR ABSORPTION COST:
Traditional method of paying for products, in
which all fixed and variable production costs
are capitalized.
52. COST: Slaughtered resources that are
capitalized in order to achieve an objective
specific.
53. CONTROLLABLE COST: Any cost or
expense that is primarily subject to the
influence of a specific responsibility center for
a specific duration
of time.
54. COST OF CONVERSION OR
TRANSFORMATION: It is composed of the
hand of
Direct work and general manufacturing costs.
55. OPPORTUNITY COST: Investment
alternative that is discarded, lost or sacrificed
in order to take a different one.
56. DIFFERENTIAL COST: See incremental
cost.
57. DIRECT COST: Cost or expense that can
be specifically identified with a
product, process, work or responsibility center.
58. STANDARD COST: Scientific
predetermined cost or very carefully which
It is an objective to achieve.
59. FIXED COST: The constant cost or
expense, which remains unchanged during a
determined period of time and for a specific
production range, regardless
the volume produced within that range.
60. INCREMENTAL COST: Also known as
differential cost. It is the difference in costs
between two options in a decision
61. INDIRECT COST: One who cannot be
specifically identified with a product, process,
work or responsibility center.
62. MIXED COST: See semi-variable cost.
63. PRIME COST: Direct materials and direct
labor constitute it.
64. AVERAGE COST: The one that is
calculated by dividing the total costs by the
number of units produced or other specific
denominator.
65. SEMIVARIABLE COST: Also known as
semi-fixed or mixed cost. They are Costs or
expenses that have elements of fixed and
variable costs at the same time.
66. TOTAL COST: The sum of the three
elements of cost: Direct materials, hand of
direct work and general manufacturing costs.
67. VARIABLE COST: The cost or expense
that changes proportionally with the volume
produced, for a certain period of time and for a
range of production specific.
68. PERIOD COSTS: Costs that are taken to
expense during the period in which incur.
69. PRODUCT COSTS: Capitalized costs,
allocated, to inventories when they are
incurred. They only become expenses when
they are sold. Also known as inventory or
capitalizable costs.
70. GENERAL MANUFACTURING COSTS
(CGF): All production costs except those of
direct materials and those of direct labor. It is
also known such as indirect manufacturing
costs, general or indirect manufacturing costs
or production, manufacturing load and other
similar.
71. INDIRECT MANUFACTURING COSTS
(CIF): See general manufacturing costs.
72. REAL COSTS: Historical costs, costs
actually incurred, to difference from standard
or default costs.

73. DEDICATION AND ADMINISTRATIVE

COMMITMENT: Background of the budgeting
that has to do with the confidence that senior
management has in their Own ability to
significantly influence the future course of the
company.
 originated in the profits generated by the
D company in a certain period.

74. DEMAND: Interest in acquiring a good to

satisfy a need.

75. PRODUCTION DEPARTMENT: Section

of the manufacturing plant of the company that
Its main purpose is to prepare goods or parts
of the goods produced by the company.

76. SERVICE DEPARTMENT: Department in

which the main reason is that of
provide services to other departments of the
company.

77. DEPRECIATION: Expenditure or attrition

of some goods due to use during
weather.

78. DECENTRALIZATION: Freedom to make

decisions. Total decentralization
it means the minimum of limitations and the
maximum freedom to make decisions to
lower levels

79. DISCOUNT: Difference between the

nominal value and the commercial value of an
asset
financial.

80. DEVALUATION: Loss of the purchasing

power of the currency with respect to another
that is
It has as a pattern.

81. DIVIDEND: Amount paid to shareholders

in money or kind as compensation
for its investment, in proportion to the amount
of shares owned and with resources
E
82. EXPENSE: Accounting represents the
value of the goods or services used in the
process of generating income.

83. COMPANY: Organization or economic

entity.
84. ECONOMIC ENTE: Natural or legal
person that develops economic activities or
commercial.

85. STATE: See event.