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Business Finance EXECUTIVE SUMMARY

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Added on  2021-01-01

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In business environment, the main focus of internal manager is to estimate about the total income and expenses in effective manner so that actual profitability can be determined. In business environment, the main focus of internal manager is to estimate about the total income and expenses in effective manner so that actual profitability can be determined. In business environment, the main focus of internal manager is to estimate about the total income and expenses in effective manner so that actual profitability can be determined.

Business Finance EXECUTIVE SUMMARY

   Added on 2021-01-01

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Business Finance EXECUTIVE SUMMARY_1
EXECUTIVE SUMMARYThe main concepts about this report are to give a detail description about the importanceabout business finance and the usefulness of budgets to support operation of an organisation. Allthose budgets are crucial to manage the activities and make them effective so that availablefinance can generate maximum result. Different types of budgets are supportive in makingproper forecast about future income and expenses in a specific time frame. Apart from this reportalso summaries that usage of traditional budgets in snappy drink. The uses more effectivebudgets methods such as ZBB and rolling budgets that support in further expansion of businessand development of new product line.
Business Finance EXECUTIVE SUMMARY_2
ContentsEXECUTIVE SUMMARY.............................................................................................................1Contents...........................................................................................................................................2PART 1............................................................................................................................................3(i) Role of budgets in the development of business model..........................................................3(ii) Application of traditional budget approach for future cost management..............................5(iii) Traditional budget is appropriate to all or some part of business in future form.................6PART 2............................................................................................................................................7(iv) Explanation of rolling, zero based and activity based budget..............................................7(v) The potential application of above mentioned budgets.........................................................8(vi) Analysis of zero based, activity based and rolling budgets in the context of snappycompany.......................................................................................................................................9REFERENCES..............................................................................................................................102
Business Finance EXECUTIVE SUMMARY_3
PART 1.(i) Role of budgets in the development of business model.In business environment, the main focus of internal manager is to estimate about the totalincome and expenses in effective manner so that actual profitability can be determined. Theyprepare budgets that are beneficial in forecasting upcoming expenses and revenues(Anandarajan, Anandarajan and Srinivasan, 2012). Manager analyse the past trends andinformation to prepare authentic budgets so that future business operation can be managed andoverall performance can be measured. From the case study, it has been observed that snappydrink is planning to produce new energy drink and develop a new venture. Therefore, manager ofcompany prepare budgets at regular interval that support in growth and development. Thesebudgets have different purpose which is discussed below:Prediction of revenue and expenses- The main purpose of budget is valuable inpredicting the upcoming expenditure and income. Usually manager looks at the previousyears budgeted information that helps in managing the available financial resource thataid in running business operations. In Snappy drinks, financial plan are effective toolsthat help them in launching new manufacturing unit for producing energy drink with newflavoured. They mainly predict the overall cost that will be spend while establishing newplant, hence they prepare polices to manage these expenses.Support in decision making- To run business in meaningful manner it is very crucial forthe manager to give more emphasis on decision making process. As it is observed thatmany times a single decision can lead to big losses. Ultimately, appropriate budgetsbenefit while making meaningful future decisions and overall growth. As budgets havepurpose to support decision making therefore it require valuable sources and informationthat support in decision making process (Burns and Dewhurst, 2016). In case if businessfirm consider their planned information while making decision than they get hugesuccesses.3
Business Finance EXECUTIVE SUMMARY_4

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