Managing Finances and Budget - Study Material with Solved Assignments

MANAGING FINANCES
AND BUDGET

Table of Contents
Section 1..........................................................................................................................................4
Question 1...................................................................................................................................4
Question 2...................................................................................................................................5
Question 3...................................................................................................................................5
Question 4...................................................................................................................................5
Question 5...................................................................................................................................5
Question 6...................................................................................................................................5
Question 7...................................................................................................................................6
Question 8...................................................................................................................................6
Question 9...................................................................................................................................6
Question 10.................................................................................................................................6
Question 11.................................................................................................................................6
Question 12.................................................................................................................................6
Question 13.................................................................................................................................7
Section 2..........................................................................................................................................7
Question 1...................................................................................................................................7
Question 2...................................................................................................................................7
Question 3...................................................................................................................................7
Question 4...................................................................................................................................7
Question 5...................................................................................................................................8
Question 6...................................................................................................................................8
Question 7...................................................................................................................................8
Question 8...................................................................................................................................8
Question 9...................................................................................................................................8
Question 10.................................................................................................................................8
Question 11.................................................................................................................................8
Question 12.................................................................................................................................9
Question 13.................................................................................................................................9
Question 14.................................................................................................................................9
Section 3..........................................................................................................................................9

Question 1...................................................................................................................................9
Question 2.................................................................................................................................10
Question 3.................................................................................................................................10
Question 4.................................................................................................................................10
Question 5.................................................................................................................................10
Question 6.................................................................................................................................10
Question 7.................................................................................................................................11
Question 8.................................................................................................................................12
Question 9.................................................................................................................................12
Question 10...............................................................................................................................12
Question 11...............................................................................................................................12
Section 4........................................................................................................................................13
Question 1.................................................................................................................................13
Question 2.................................................................................................................................13
Question 3.................................................................................................................................14
Question 4.................................................................................................................................14
Question 5.................................................................................................................................14
Case study part...............................................................................................................................14
Task 1............................................................................................................................................14
Question 1.................................................................................................................................14
Question 2.................................................................................................................................15
Question 3.................................................................................................................................15
Question 4.................................................................................................................................15
Question 5.................................................................................................................................16
Task 2............................................................................................................................................16
Task 3............................................................................................................................................17
Question 1.................................................................................................................................17
Question 2.................................................................................................................................17
Question 3.................................................................................................................................18
Question 4.................................................................................................................................18
Question 5.................................................................................................................................18

REFERENCES..............................................................................................................................20

Section 1
Question 1
Budget is an estimated value or projection regarding the set of activities that is
conducted. This is more like a detailed financial planning comprises with the revenue and
expenses related to operation and functional areas' organisation perform, The purpose of budget
is to control and monitor all different financial activities related to the organisation.
Question 2
Funds associated with the business organisation are segregated into all its different
departments and projects operate by the company. The financial resources are limited in number
that require strong support from the financial team and professionals to identify the overall needs
and demands of the project in context to allocation of its financial resources and funds (Bryce,
2017). Every single function and operational area has its own needs and requirements that should
have been overcome with support of financial resources available with the business entity. On
the basis of number of functions operated and conducted this segregation of finances is done.
Question 3
Fixed budget remain fixed irrespective of the level of activity. This is the total of
expected cost that will be incurred even if the production is not allocated or the services are not
delivered to the customers. The role of the fixed cost is to project all different fixed nature of
cost. The other side variable budget is a sum of all different variable cost associated with
business operations of company.
Question 4
Cash budget is a term denoted as the projection of all different cash flow activities in the
coming future. This is a statement that include all the cash nature inflow and outflow of funds in
the organisation. The use of the cash budget is to monitor and control the liquidity situation of
the organisation in the coming financial year.
Question 5
Profit and loss budget is a projection of expected future profitability and loss the
organisation wound entertain against the operational and functional activity conducted. This is a

budget that involve expected future profit and loss projection related to the organisation. This is
comprises with expected income and all expected expenses that company will incurred.
Question 6
Financial viability is a practice that involve the viability of the financial resources
associated with the organisation. This involves analysing the financial resources of the
organisation and also involve addressing the financial requirements of the organisation.
Profitability is a term that involve assessing the outcome of the business operation and function
that is conducted (Chanias, Myers and Hess, 2019). Liquidity is on the other side a term that
involve the position of the cash in the business. This involves where the organisation is capable
to mitigate its expenses and cash flow associated with the business organisation.
Question 7
Budget cycle is a tenure of budget. This is the overall time that is target against the
budget. Usually the budget cycle is of one financial year.
Question 8
Everly time budget priorities get change this also effect the budget. This further create an
impact over the areas of budget that will be affected. This involves making necessary changes in
the budget on the basis of the new and modified priorities. In this situation budget do not remain
the same it also alter based on the new and modified priorities.
Question 9
The financial experts and the board of directors of company are interested stakeholder
group that is interested in knowing about the wage related expenses in budget. The limitation of
funding in wages in always a part of the financial experts and also for the accountant.
Question 10
The awareness of budget control can be raised with support of email marketing. The
another practice that can be adopted in this regard is by conducting the social event. There are
the two main activities that is conducted to spread the awareness in respect to the budget
controlling process.
Question 11
Budget control allow the organisation to maximise the utilisation of financial resources
associated with the organisation. This is like for example of it is supported that the budget