What are the major benefits of budgeting

Reference no: EM13871949

Learning Objectives

1. Develop quantitative skills necessary to read, interpret and perform the calculations for the accounting reports involved in cost control and profit planning.

2. Evaluate and identify financial strengths and weaknesses of a business through appropriate conceptual analysis.

3. Analyse information and knowledge effectively in order to develop meaning to solve complex problems and make decisions

Question 1 - Plannina and Control

Write an essay of 1000 words demonstrating your conceptual understanding of the following questions.

1. Is budgeting used primarily for scorekeeping, attention, directing or problem solving?

2. How do strategic planning, long range planning and budgeting differ?

3. Why is budgeted performance better than past performance as a basis for judging actual results?

4. What are the major benefits of budgeting?

5. Is budgeting an unnecessary burden for day to day problems? Explain your answer.

6. Why is the sales forecast the starting point for budgeting?

7. How do Spreadsheets aid the application of sensitivity analysis?

Question 2 - Budget Preparation - Intellectual and Practical Skills

Application of learning:

Prepare the following budgets for the 6 months ending September 2013. You are required to use Excel spreadsheets, which can be copied into word once you finish, should you wish. A template is available for you to use as a basis.

a) Sales budget

b) Cash Budget

c) Debtors Budget

d) Creditors Budget

e) Production Cost Budget

f) Raw Materials and finished goods Budget

g) Profit and Loss Account Budget

h) Balance Sheet Budget

Draw conclusions from your budgets and prepare a short management report.

Verified Expert

Reference no: EM13871949

Questions Cloud

What effects have basel accords had on international banks : In what way is the Eurocurrency market different from an internal credit market? What is the LIBOR? What are the Basel Accords? What effects have they had on international banks?

Explain the concept of notice pleading : Explain the concept of notice pleading. What does it mean to plead a cause of action by it's elements? Give an example

Explain efficiency issues and alternate method : Bob sending an encrypted, signed message to Alice and Carol.

Dunbar company purchased, on credit : Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January 13 and the remaining 80% on February 1.

What are the major benefits of budgeting : Evaluate and identify financial strengths and weaknesses of a business through appropriate conceptual analysis.

What is the difference between a money and a capital market : What is the difference between a money market and a capital market? What is the difference between an internal and an external market? What is the Eurocurrency market and what is its function?

Difference between project-based and non-project-based tasks : difference between project-based and non-project-based tasks

Aquarium consists of thick plastic : A large aquarium of height 5.00 m is filled with fresh water to a depth of 2.00 m. One wall of the aquarium consists of thick plastic 8.00 m wide. By how much does the total force on that wall increase if the aquarium is next filled to a depth of ..

A figure skater rotates about a vertical axis : A car is stopped for a traffic signal. When the light turns green, the car accelerates, increasing its speed from zero to 4.89 m/s over a time interval of 0.522 s. What impulse and average force does a 74 kg passenger in the car experience?

User Account

All Pages