Accounting Assignment 2022

Running head: ACCOUNTING ASSIGNMENT
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Accounting Assignment:
Name of the Student:
Name of the University:
Author’s Note:

ACCOUNTING ASSIGNMENT1
Table of Contents
Budgeting.........................................................................................................................................2
Importance of Budgeting.............................................................................................................2
Quarterly Sales Budget................................................................................................................3
Product Diversification................................................................................................................3
Flexible Budget............................................................................................................................4
Overspending Issues....................................................................................................................5
References........................................................................................................................................6

ACCOUNTING ASSIGNMENT2
Budgeting
Budgeting is an important accounting tool which well helps an organisations and
companies for planning and forecasting the various cash flows that they would be experiencing
for the given course of time period. Financial Budgets are usually prepared monthly, quarterly,
semi-annually and annually depending upon the nature and type of business a company deals
with. Budgeting would be allowing the institutions to well reach and meet their goals, while at
the same time keeping a check at their costs and expenses which they would be experiencing in
any form of business (Abor, 2017).
Importance of Budgeting
In the case of Babycakes Bakery Services, they should even well create a budget which
would highlight or reflect the amount that they have for operational and as well as capital
expenditures depending upon the sales they would be generating. Overspending and Increase in
Operational expenses are some of the key facts that can be well analysed when the Bakery
Services prepares a realistic budget (Ittner & Michels, 2017). The same would also be allowing
the management of the company to plan their course of actions and understand the amount of
finance if required for successfully carrying on the business operations. Babycakes have to
procure or get their raw materials almost on a daily basis and it is important at the same time that
they keep a sufficient amount of capital for well financing their daily business operations. The
key raw materials that are used by the company includes yeast, flavours, sugar, flour, improvers,
salt, butter, cheese and others (Schabus, Kross & Verbeeten, 2018). Budgeting would in turn be
helping them keep a proper track record of the various raw materials that would be used and the
amount on a whole that should be kept aside. Budgeting would also allow the management of the