Budgeting

Order Description Units covered- Fin" rel="nofollow">inancial Plannin" rel="nofollow">ing and forcastin" rel="nofollow">ing Learnin" rel="nofollow">ing aim: Investigate the use of budges and budgetary control in" rel="nofollow">in busin" rel="nofollow">iness Scenario: You have completed your btec level 2 in" rel="nofollow">in busin" rel="nofollow">iness and are currently workin" rel="nofollow">ing with a management consultin" rel="nofollow">ing firm. Ralf, a local busin" rel="nofollow">inessperson approached your firm for help and support in" rel="nofollow">in plannin" rel="nofollow">ing his busin" rel="nofollow">iness budget. He is also keen to understand the application of different types of budget in" rel="nofollow">in busin" rel="nofollow">iness and what budgetary control is used for. Task 1- Describe the purpose of specific budgets used in" rel="nofollow">in two contrastin" rel="nofollow">ing busin" rel="nofollow">inesses. You are required to do a brief report for the head of department like tesco (retail busin" rel="nofollow">iness and the head of dell (manufacturin" rel="nofollow">ing busin" rel="nofollow">iness), to describe the purpose of specific budgets for their busin" rel="nofollow">iness. You could also use a small busin" rel="nofollow">iness like a corner shop and compare it with the larger busin" rel="nofollow">iness like starbucks(coffee chain" rel="nofollow">in) In any busin" rel="nofollow">iness, the purpose of budgetin" rel="nofollow">ing is to make fin" rel="nofollow">inancial plans that can be monitored in" rel="nofollow">in order to control busin" rel="nofollow">iness activity. However, the budgetin" rel="nofollow">ing focus of a retailer and a manufacturin" rel="nofollow">ing busin" rel="nofollow">iness differs. Task 2- Explain" rel="nofollow">in how budgetary control is used in" rel="nofollow">in two contrastin" rel="nofollow">ing busin" rel="nofollow">inesses You are required to prepare in" rel="nofollow">information for a leaflet aimed at new busin" rel="nofollow">inesses to advise them on how other busin" rel="nofollow">inesses use budgets to manage their fin" rel="nofollow">inances. You need to explain" rel="nofollow">in how budgetary control is used in" rel="nofollow">in the busin" rel="nofollow">inesses selected previously. Task 3- Identify favourable and adverse variables in" rel="nofollow">in a given busin" rel="nofollow">inesses budget shown below (this is the table below) Items- Materials, Labour, Electricity, Sales, Total Budget allocations- (Materials) 100,000, (Labour) 150,000,) Electricity) 12,000, 400,000 Actual results- (Materials) 150,000, (Labour) 200,000,) Electricity) 9,000, 450,000 Variance(£) – Left blank Task 4- You are required to complete the schedule to identify favourable and adverse variances for a given busin" rel="nofollow">inesses budget and explain" rel="nofollow">in the concept of variance analysis. Compare how the budgetary control is used in" rel="nofollow">in the two contrastin" rel="nofollow">ing busin" rel="nofollow">inesses, usin" rel="nofollow">ing tesco and dell or any other two contrastin" rel="nofollow">ing busin" rel="nofollow">iness as an example. You are required to prepare a short report to compare how two contrastin" rel="nofollow">ing busin" rel="nofollow">inesses use budgetin" rel="nofollow">ing control Evaluate the in" rel="nofollow">influence and variances on fin" rel="nofollow">inancial decisions made by the above busin" rel="nofollow">iness. Task 4B- You are required to prepare a short report to evaluate the in" rel="nofollow">influence of variances on fin" rel="nofollow">inancial decisions made by one of the selected busin" rel="nofollow">inesses.