Reference no: EM132688532
Question 1. Explain how each of the factors below impact on budget development.
Factors
Impact
a. growth or decline in economic conditions
b. human resource requirements
c. new legislation or regulation
d. organisational and management restructures
e. organisational objectives
f. scope of the project
g. shift in market trends
h. significant price movement for certain commodities or items
i. supplier availability and cost
Question 2. Explain how each of the data below can assist in preparing a budget
Data
How the data is useful for preparing a budget.
a. competitor research
b. customer or supplier research
c. declared commitments in areas of operation
d. financial information from suppliers
e. financial proposals from key stakeholders
f. income and expenditure for previous time periods
g. departmental, event or project budgets
h. grant funding guidelines or limitations
i. performance information from previous periods
Question 3. Explain the importance of each of the following budget preparation practices
Practice
Importance
a. management policies and procedures
b. organisational budget preparation guidelines