Importance of Budget Management

Assessment Part 1

1. Explain the detailed description of budget and why it is useful to managers.

Budget and research money and money for years into the future and collected and re-evaluated on the basis of time. Financial means that the value is expected when the budget should mean that revenues are expected to cost the same.

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The use of the process. This is a report in detail on the financial results, which are expected after some time. There are two words bottom of this. The first keyword “waiting”. The expected means that something’s going to happen. The keyword is the second “front”, which is the time at the time of coming. Therefore, the Budget is to prepare the detailed financial results that may happen next. Based on the company’s financial profile number, the same way point arithmetic. Financial plan and financial forecasting at the appointed time in the future. Budget season is over, money merchants of books and money to pay any invoice is paid

Most of the process of an effort to predict costs. If you take a few things on the budget front, then you’re saying the money to foretell the future. It is important to the future success of the paper and out of money, and money. You can project your money before the age of 3 to 5 years. Clearly, these figures are forecasted and should be updated if your money is limited development.

Purpose for managers:

Planning

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Managers can use budget for planning as how much fund, equipment, resources can be used in organization. If the real cost or expenses are higher than the estimated data managers can plan the budget next time accordingly. From budget managers can make perfect planning for running organization smoothly.

Control

The most important advantage for the preparation of the budget management helps management to have a budgetary control with the aim of monitoring and comparison of actual results. This further helps in the adaptation of the various actions in changing the business operations, as time goes by, or may change the budget if it becomes unavailable.

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2. The two different implications on managers about budgeting:

1. Monitoring:

Monitoring of budget will help mangers for making more effective for organization. Financial system as per monitoring a system of work and work conditions. Business owners should establish a monitoring mechanism to ensure that the powder is responsible for the money that they have received. Environmental business today, signs of money was established to measure if organizations use their money for buying products and services. It is important that, when the regulator to create a budget, they know how much money the group is changing in such a way that gives patients and good works. The mechanism of authority, in this sense, it is just a measure or standard way to measure progress in achieving your financial goals. Each comes with the same goals money and create money, to help organizations achieve; however, there must be a way of monitoring.

2. Prioritising:

Budget prioritising will helpful to managers as per the priority mangers will start the steps to take and plan well budget. Prioritising will help organization to take the first essential things to do this will help managers to use proper resources at proper place for perfect advancement.

Assessment Part 2

1. Historical data and projected data of Warehouse Ltd & the purpose of the managers to validate.

Historical data about digital explain the work, what will happen in the industry already. Historical data is often archived and can be carried out in the non-volatile, storage. Historical data may be useful to try to predict the future of the industry and market, as well as carrying out analysis predictive.

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Historical data to come to your company; It even records the data’s great for development, such as Consumer Confidence Index, interest rates, building starts or variable economic you believe about your business based on your experience in business.

All projections will be broken and the moon perhaps a year. If you choose as many years, many want to be more than a residential one year and then annually for.

The projection that the longer the money is financial usage. Money can be summarized by the department or the main part of the rich; you can keep the line item detail of the budget. Money will be well, perhaps to add different out of money. If money is a great show and money as a percentage of sales, and the number and say this is part of a careful, too.

Managers in order to validate the data they confirm the day and keep your data and systems if there were others searching and processing, and to learn how to make good to get that kind of thinking to imagine. The integration of data from user “real” to see if there is. If so, what are filled with information available in the new data schema model work management system database did stick to the facts and Labour can start to create data stores.

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2. Describe the obstacles in data collection like missing, delated expectations.

In order to gather the data in many organizations there are number of errors occurs while collecting them like some data missed by employees to collect and report to managers. As they missed data the whole organization project gets mislead and their work get failed. The delayed information or data also delayed the work of managers to complete project. The whole organization and managers as well expect to be collected appropriate and complete data without and error to run the business smooth.

3. How to calculate the budget is supported by asking flexible evidence.

Budget calculation should join the lawsuit or money order service operating budget should match the subject line, to ensure the effective compared with budget work of historical and projected budget. The mismatch between budget items and accounting creates some of the responsibilities of the staff leadership or staff component which should translate between the two accidents and evidence to undermine the value of financial reports. Especially money, when accounting / financial statement line items without corresponding budget line items, it can cause budget overages or fault reporting line item measure.

Create a top line of financial statement, how money interpretation of the real line shows the model, using common financial services research industry, and organization of data collection and Cultural Data Project. Although not have to tell you how to build a budget easily solve cross legs resources required to run these requirements and offers accurate and staff time well.

4. Calculation of sales, purchases, inventory, cash flow, COGS income statement and balance sheet as per the Appendix.

Sales budget for warehouse ltd 2012

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Desire Net profit = $13,725

Sales = $137,250

Purchase budget for warehouse ltd 2012

Desire Ending inventory = $15,750

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Require for sales = $98,036

Opening inventory = $15,000

Purchase required = $98,786

Inventory budget for warehouse ltd 2012

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Opening inventory = $15,000

Ending inventory = $15,750

Cost of goods sold for warehouse ltd 2012

Opening inventory = $15,000

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Purchases = $ 98,786

Ending inventory = $15,750

COGS = $ 98,036

Operating expenses budget of warehouse ltd 2012

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Marketing expenses = $ 6,862.5

Admin expenses = $14,510.07

Finance expenses = $ 4,117.5

Total $ 25,490.1

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Cash flow budget of warehouse ltd 2012      

Cash 31july 2011 = $ 35,000

Revenue = $ 1, 37,250

Cash payments = $1, 37,275

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Cash at 30 June 2012 = $ 34,975

Income statement for budgeted ending year of 30 June 2012

Revenue	137,250
COGS Can You Handle Complex Subjects? For sure! Our writers with advanced degrees dive into any topic—think quantum physics or medieval lit—with deep research and clear, sharp writing. They’ll tailor it to your academic level, ensuring it’s thorough yet easy to follow, no matter how tricky the subject gets.	98,036
Gross profit	39,214
Operating expenses	25,490 How Do You Meet Prof Standards? We stick to your rubric like glue—nailing the structure, depth, and tone your professor wants—then polish it with edits for that extra shine. Our writers know what profs look for, and we double-check every detail to make sure it’s submission-ready and grade-worthy.
Net profit	13,724

Balance sheet of 30 June 2012 as per the budgeted

Current assets What’s Your Editing Like? Send us your draft and tell us your goals—we’ll refine it, tightening arguments and boosting clarity while keeping your unique voice intact. Our editors work fast, delivering pro-level results that make your paper pop, whether it’s a light touch-up or a deeper rework.	50,725
Non-current assets	73500
124,225
Current liabilities Can You Pick My Topic? Yes—we’ve got your back! We’ll brainstorm fresh, workable ideas tailored to your assignment, picking ones that spark interest and fit the scope. You choose the winner, and we’ll turn it into a standout paper that’s all yours.	12,000
Non-current liabilities	7,000
19,000
Net assets	105,225
Equity Do You Do Quick Revisions? Yep—need changes fast? We’ll jump on your paper and polish it up in hours, fixing whatever needs tweaking so it’s ready to submit with zero stress. Just let us know what’s off, and we’ll make it right, pronto.	105,225

Assessment Part 3

1. Cash budget:

Cash Budget for Countdown Limited December 2012

Actual	Budget	Variance Can You Outline First? Sure thing! We’ll whip up a clear outline to map out your paper’s flow—key points, structure, all of it—so you can sign off before we dive in. It’s a handy way to keep everything aligned with your vision from the start. $
Cash Balance	5,000.00	5,000.00	0.00
Cash Receipts:
Cash	24,000 Can You Add Data or Graphs? Absolutely—we’ll weave in sharp analysis or eye-catching visuals like stats and charts to level up your paper. Whether it’s crunching numbers or designing a graph, our writers make it professional and impactful, tailored to your topic.	22,000	2,000
Collection of amount receivable	13,500.00	15,000.00	1500
Other Income	29,000.00	32000.00	3000 How Do You Manage Big Projects? We tackle each chunk with precision, keeping quality consistent and deadlines on track from start to finish. Whether it’s a dissertation or a multi-part essay, we stay in sync with you, delivering top-notch work every step of the way.
Total cash	71,500.00	74000.00	2500
Expected Cash Payments Do You Follow Global Academic Rules? Yes—we’ve got it down! Our writers switch seamlessly between UK, US, Australian, or any other standards, matching your school’s exact expectations. Your paper will feel native to your system, polished and ready for wherever you’re studying.
Raw material	18,000.00	15,000.00	3000
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Other direct expenses I received some comments from my teacher. Can you help me with them? Absolutely! If your teacher’s got feedback, you can request a free revision within 7 days of approving your paper—just hit the revision request button on your personal order page. Want a different writer to take a crack at it? You can ask for that too, though we might need an extra 12 hours to line someone up. After that 7-day window, free revisions wrap up, but you can still go for a paid minor or major revision (details are on your order page). What if I’m not satisfied with my order? If your paper needs some tweaks, you’ve got that free 7-day revision window after approval—just use the “Revision” button on your page. Once those 7 days are up, paid revision options kick in, and the cost depends on how much needs fixing. Chat with our support team to figure out the best way forward. If you feel the writer missed the mark on your instructions and the quality’s off, let us know—we’ll dig in and sort it out. If revisions don’t cut it, you can ask for a refund. Our dispute team will look into it and figure out what we can offer. Check out our money-back guarantee page for the full scoop.	500.00	1,500.00	1000
Advertising	500.00	1,000.00	500
Selling Expenses	1,500.00	1,400.00	100
Administrative expenses	1,500.00	500.00	1000
Plant and Equipment Exp.	5,000.00	7,500.00	2500
Other payments	1,700	2,000	300
Total cash expenses	35,900.00	38,300.00	2400
Ending cash balance	35,600.00	35,700.00	100

Actual	Budgeted	Variance $	Variance %
Income
Sales :-
Retail Sales	5,318.00	5,000.00	318	6.36
Wholesale Sales	1,567.50	1,500.00	67.5	4.5
Consignment Sales	2,000.00	2,500.00	500	20
Total Income	8885.50	9,000.00	114.5	1.27
Cost of Sales
Retail cost of sales	3,419.31	3,000.00	419.31	13.98
Wholesale cost of sales	1,001.33	1,000.00	1.33	0.13
Total cost of sales	4,420.64	4,000.00	420.64	10.52
Gross Profit	4,464.86	5,000.00	535.14	10.70
Expenses
Car & Truck	100.00	125.00	25	20
Freight Paid	48.95	75.00	26.05	34.73
Insurance	45.00	50.00	5	10
Interest	750.00	750.00	0	0
Legal & prof. services	178.90	250.00	71.1	28.44
Actual	Budgeted	Variance $	Variance %
Lease Machinery & Equipment	100.00	120.00	20	16.66
Supplies	150.00	150.00	0	0
Taxes	50.00	75.00	25	33.33
Meals & Entertainment	1,000.00	1,500.00	500	33.33
Utilities	450.00	400.00	50	12.5
Wages paid	750.00	700.00	50	7.14
Total Expenses	3,622.85	4,195.00	572.15	13.63
Operating profit	842.01	805.00	37.01	4.59
Net Profit / Loss	842.01	805.00	37.01	4.59

1. Two Variance From Cash Budget For Countdown Limited

1. Promotional costs:

The promotion cost means advertising expenses in Cash Budget For Countdown Limited is projected to 500 where the actual expense is about 1500 which was 1000 more spent than projected.The warehouse can lemmatize the expenses for promotion or they can extend their budget.

2. Plant and equipment costs:

Companies tax cost of reducing the company’s seed and tools to reduce factories and equipment shut down, 2500 to the industry forefront at the actual 5000, leaving little but the seed 7,500 budget and the economy, price differences between crops is calculated. In this case also the Warehouse can manage their expense for plant and equipment purposes as their budget for this exceed about 2500.

Two Variance From Profit & loss Statement For Countdown Limited

1. Taxes:

The countdown word limited tax money and $ 50, but their tax money as -for- budget and $ 75 corporate tax Actual tax charge of 50% or more, and thus the actual number of companies reducing taxes, reducing the company. The loss after tax in the form of advertising revenue. Here, countdown has profit of 25 as the tax is about 50 and budgeted 25 more. They can use the profit to manage the other exceed expenses.

2. Dining and entertainment:

The modification of food and $ 500 amplifier, entertainment, Daniel, for the amount of food and an amplifier; Entertainment for $ 1000 and $ 1500 budget to reduce the staff to eat Countdown Entertainment little recognition of cheap food, etc. Features: companies can save money on food. Moreover, employees were able to calculate costs and limited love, and movies can make money. In this case also having profit so that countdown can use the profited money in loss budget.

References

“Budget Choice: Planning Versus Control”. Harvard Business Review. N.P., 2017. Web. 8 Mar. 2017.

“IBM Knowledge Centre”. Ibm.com. N.P., 2017. Web. 8 Mar. 2017.

Power, Dan. “Data Warehousing 101 by Dan Power – Beyenetwork”. B-eye-network.com. N.P., 2017. Web. 8 Mar. 2017.

Rahm, Erhard. “Data Cleaning: Problems and Current Approaches”. www.betterevaluation.org. N.P., 2017. Web. 8 Mar. 2017.

“Why Is It Important For A Business To Budget?” Smallbusiness.chron.com. N.P., 2017. Web. 8 Mar. 2017.

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