What are the major benefits of budgeting

Assignment Help Finance Basics
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

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 m

Evaluate the financial performance of a company

Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far. Provide a theoretica

What is the exchange rate of yen per franc

If exchange rates are 200 yen per dollar and 50 U.S. cents per Swiss franc, what is the exchange rate of yen per franc? The dollar is trading at ¥100/$ and at SFr1.60/$. Wh

Describe the behavior of real exchange rates

Describe the behavior of real exchange rates. What methods can be used to forecast future spot rates of exchange? How can the international parity conditions allow you to fore

What are real changes in exchange rates

What does the international Fisher relation say about interest rate and inflation differentials? What are real changes in exchange rates? Are real exchange rates in equilibriu

What determines the intrinsic value of an option

What determines the intrinsic value of an option? What determines the time value of an option? Currency volatility is a key determinant of currency option value, but it is not

Capital structure weights on a book value basis

Erna Corp. has 4 million shares of common stock outstanding. The current share price is $83, and the book value per share is $8. Erna Corp. also has two bond issues outstandin

Calculate the annual depreciation allowances

A piece of newly purchased industrial equipment costs $974,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in  table Calcula

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd