3
Question 1
Introduction
In the business, there is an objective that is established and various policies are
formulated for the same. All of them for Elephant Corporation will be provided in the report
below.
The budget has been prepared and in that, there are some findings which are provided
which represent the surplus of funds. The calculations are provided below:
Particulars Quarter 1 Quarter 2 Quarter
3
Quarter 4 Total
Units 500 1500 3000 10000 15000
Selling price 8 8 8 8 8
Cash inflow 4000 12000 24000 80000 120000
Cash outflow 12000 22000 7000 1000 42000
Surplus -8000 -10000 17000 79000 78000
The calculation of responsible employees showed a surplus of $69000 in the last
quarter and $70000 in the complete year. There is a discrepancy as the actual surplus is
$78000 and $79000 respectively. The same can be handled with the help of reconciliation.
The objective of the company is to provide environmentally friendly services. For
this, the policy will be established in which continuous monitoring will be made.
The environmental factors shall be handled by allocating the required resources for
such factors so that they can be carried effectively.
The inhibit performance shall be identified by setting the parameters and determining
the cause of the problems. The budget will be incorporating the expenses which might be
incurred in such uncertain events (Tie et al., 2015). The budget shall be communicated to all
and for that, there will be a proper strategy in which the circulation of the budget will be
made to all. There will be proper reports which will be provided to all the departments. The
variances shall be identified and then the steps shall be taken to eliminate them. By this, the
costs will be incurred as per the budget and will be maintained in the limit. The deviations
which are present in the price and usage will be analyzed by monitoring the performance
regularly.
Conclusion
The report covered all the aspects in relation to budget and all the variances have been
identified. The manner in which several issues will be handled is also identified.

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Management Accounting | Assignment-2

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