Business Finance Assignment : TownScape plc

   

Added on  2021-01-02

11 Pages3384 Words325 Views
Business Finance
Business Finance Assignment : TownScape plc_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Part 1................................................................................................................................................11. Purposes of preparing budget and processes organisation needs to follow and enumeratingbudget process........................................................................................................................12. Important cost drivers and areas where cost budgeting will be significant and application oftraditional budgeting approaches............................................................................................23. Analyse whether traditional budgetary system is significant to business in the future......3Part 2................................................................................................................................................44. Different kinds of budget methods and merits and demerits of methods...........................45. Application of methods for effective performance of company........................................56. Assessing whether one of above methods or combination of method would be appropriatefor business.............................................................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
Business Finance Assignment : TownScape plc_2
INTRODUCTIONBusiness finance is includes utilization of funds and it refers money and credit employedin any business. All company needed business finance for evaluating their business and forecasttheir income and expenses for earning profit. Its need is required for the business for itsestablishment. In this report we used TownScape plc company context. It is an internationalmanufacturer of street furniture. This company produces 80 different products. Town space hasalways used a traditional budgeting system. Thus, modern budgeting tools are highlighted in thereport for successful expansion.Part 11. Purposes of preparing budget and processes organisation needs to follow and enumeratingbudget processBudget is a very important part of an organization for evaluating the actual results of theorganization. Budget is a future estimation of any company it includes income and resources.Budget is a key component of a company. The main purpose of budgeting is to forecast ofincome and expenditure for an organization. And budgeting is a tool for decision making Andbudgeting is also monitoring business performance. Budget objectives is to set the fiscal targetsand the expenditure compatible with these targets. Allocation of resources is also a mainobjective of budgeting (Bendell and Doyle, 2017)In budget forecast of income and expenditure very important part of the businessplanning. The organizations need to able to predict the business should make profit or not. Theorganisation forecast their income and expenditure for profitability. And its purpose is toprovide a blueprint of the business how it should be perform . It also includes certain strategies,events and plans. The another purpose of budgeting is to provide take a right decision accordingto the process. To manage a business the expenditure must be tightly controlled. And the lastpurpose of budgeting is business performance in this enable the actual performance to beevaluate with the forecast business performance (Zetlin-Jones and Shourideh, 2017).Budgeting process includesBudget are always prepared on a assumption. These assumptions related with sales trends, costtrends or environmental conditions. This assumption reviewed according to the recentenvironmental conditions.1
Business Finance Assignment : TownScape plc_3
Preparation of budget the attention has to be given to the available funding and investablefunding.In budgeting costing is a main consideration point which is affect the business.Budgeting process are taken in order to formulate a budget for the current period.All budgets are based on sales. Because it determines the business is generating revenue forsurvival.The department budget will help to reach budget expenditure for the budgeted period. Capital expenditure helps to expansion of the business . It's also help business to their growth.If any changes in assumption then updated a budget model. The budget should be reviewedthoroughly once its prepared because if any correction should be correct.This budget presented to the top management for its approval. Then in the last the budget shouldbe issued (Bellucci, Borisov and Zazzaro, 2017).Town Scape Plc company also used the budget model for its development. Firstly thecompany prepared their assumption regarding future perspective . This assumption are based onenvironmental condition of the company. If the company used budgeting so the company shouldprocess according to the budget. It is the estimation of futuristic profit.2. Important cost drivers and areas where cost budgeting will be significant and application oftraditional budgeting approachesThere are many cost drivers that are required by the business to initiate control so thatcosts can be managed in the best possible manner. This is important for TownScape Plc which isplanning to expand its operations in Gulf, North America, China. Since, organisation is engagedin manufacturing of street furniture which includes benches, cycle racks, litter bins and otheritems, it is required to focus on cost drivers so that company may be able to expand with muchease. It includes setup machine expense in which number of machines set ups is cost driver.Moreover, number of hours in which machine has run is another driver. Furthermore, directlabour worked is another cost driver in TownScape Plc. Thus, all these cost drivers are importantin terms of the business in order to control expenses in the best possible way (Hoque, 2017). Furthermore, cost budgeting will be important in this aspect as company would be able tocontrol expenditures in effective manner. The cost drivers are discussed about are significant inimplementing cost budgeting which focuses on controlling expenses in effective manner. Theareas in which this type of budgeting system can be implemented are overheads, labour hours2
Business Finance Assignment : TownScape plc_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Finance Budgeting : Assignment
|15
|3740
|361

(Solved) Business Finance : Assignment
|10
|3106
|216

Assignment on Business Finance (Doc)
|10
|2973
|283

Concept of Business Finance
|13
|4153
|52

BUSINESS FINANCE TABLE OF CONTENTS INTRODUCTION 1 PART A: Purposes of Budgeting
|13
|3345
|276

Business Finance - Snappy Drinks Plc Assignment
|13
|3757
|225