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Business Finance Assignment : Snappy Drinks Plc

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Added on  2021-01-02

Business Finance Assignment : Snappy Drinks Plc

   Added on 2021-01-02

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Business Finance Assignment : Snappy Drinks Plc_1
Table of ContentsINTRODUCTION...........................................................................................................................3PART 1............................................................................................................................................3(a) Purposes of budget and process that need to follow by the company....................................3(b) Application of traditional budget approach for future cost management plan .....................5(c) Traditional budget is appropriate for all or some part of business.........................................6PART 2............................................................................................................................................7(d) Understanding about rolling, zero based and activity based budget .....................................7(e) Analysis of zero based budget in the aspect of snappy drink company.................................8(f) Potential application of budgeting method ............................................................................9CONCLUSION................................................................................................................................9REFERENCE.................................................................................................................................11
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INTRODUCTIONBusiness finance means credit and wealth which is employed in business. Finance is thefirst need of each business that needs to buy assets, goods and services, raw material and flow ofeconomic activities. Moreover, it is the provision of money in any business that helps to runefficiently and appropriately (Belás and et.al., 2015). This report will emphasis on the SnappyDrinks Plc organisation that is energy drinks manufacturing company. It manufacturesapproximately 60 different products. This report discusses about purposes of preparing a budget,process that need to follow and how it can help in business development model. A part from this,report will state about traditional budgeting approaches to make planning for future costmanagement for any specific business. Additionally, this report will contain alternative budgetmethods like rolling budget, zero base budget and activity based budget which is used to improvethe traditional approach. PART 1(a) Purposes of budget and process that need to follow by the companyBudget is the important and financial document which includes future income andexpenses that is used to run a business. Every organisation prepare different types of budget endof the year that give suggestion how much need to invest in order to increase profitability.Budgets are prepared with the help of past information and previous budget that gives ideas whatneed to do and how to do. Snappy Drinks is international company that produce more than 60products that influence the customers. It prepares budget every year by analysing the financialand previous year budget (Bezemer and Hudson, 2016). Budget plays different role in planning and control such as Snappy Drinks prepares abudget that helps to make future planning that states what should need to do in order to increaseprofits by reducing the cost. Moreover, budget helps to control the excess cost which has chancesto arise during business activity. Budget are perfect communication tools which is used toachieve the financial and operating objectives.Budget are prepares for multiple purpose that is discussed below:Forecasting the income and expenses: As budget is the estimation of future income andexpenses that is used to make future planning and maintain the control over business activities.
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