Budgeting and its Benefits for London Docks Café

INDIVIDUAL
COURSEWORK
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Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1: Outlining the objective of budgeting and explaining how London Docks Café benefits from
engaging in robust budgetary processes?...............................................................................................3
TASK 2: Presenting a report showing London Docks Café’s revenue and spending variance for
December?.............................................................................................................................................5
TASK 3: Based on the variances report prepared above, which areas of activity should be concern to
the management of London Docks Café?..............................................................................................5
TASK 4: Explaining the terms profitability and sustainability. Assessing and advising the London
Docks Café on the measures they should adopt to ensure the attainment of both mandates..................6
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7
REFERENCES......................................................................................................................................8
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INTRODUCTION
The aim of the present report is to get insights upon various concepts related to budget
and its benefit to the company, along with revenue and spending variances that London
Docks café experiences in its due course of business (Dale and et.al., 2018). It also includes
understanding of profitability as well as sustainability which should be adopted by the
company in order to have highest level of success along with an effective attainment of both
mandates in due course. The term budgeting refers to a preparation of financial draft by
company’s finance experts or accountants mentioning all the estimates of income and
expenses which the firm will have in a specific year or covering for a particular target.
Revenue is related with the net income or profit of the company which they earn from sale of
their manufacturing or offering which could be any product or services. The concept of
profitability is concern with success and high brand image within marketplace which brings
profits to them. Whereas, the sustainability includes an ability of firm to stay in market for
long period of time such as several decades or centuries through effective use of resources as
well as ethical conduct of business.
TASK 1: Outlining the objective of budgeting and explaining how London
Docks Café benefits from engaging in robust budgetary processes?
The term budgeting refers to a preparation of financial budget by every company
comprising an idea about the income and expenses which they can experience within a
specific year or for a particular task. The process of formulation of budgets by company’s
accountants or financial experts is referred as budgeting. The various objectives of budgeting
are mentioned below:
 To have fair estimation of all expenses and income so to develop proper plan and
strategies related to specific task.
 Through the help of budgeting companies are comfortable in comparing their actual
results with the set one or with the previous tasks which gives them an idea for taking
different decisions.
 Budgeting is also prepared with an objective of having proper allocation of funds to
each department of business that will then plan and execute their respective actions
flawlessly (Emerling and Wojcik-Jurkiewicz, 2018).
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