Operational Budgets & Principles Assignment
Added on -2020-07-22
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Operational budgets
Table of ContentsINTRODUCTION...........................................................................................................................1ASSESSEMENT 1..........................................................................................................................11.1 Different Budgets and their principles..................................................................................11.2 Scope of budgetary planning.................................................................................................21.3 Annual expenditure budget...................................................................................................21.4 Budgeted profit and loss........................................................................................................21.5 Purchase budget....................................................................................................................31.6 Worksheet for cash receipt and payments.............................................................................31.7 Purchase budget....................................................................................................................41.8 Variance Analysis.................................................................................................................51.9 Forecasting techniques, double entry and variance analysis.................................................5ASSESSMENT 2.............................................................................................................................62.1 Preparation of objectives of budget.......................................................................................62.2 Sales budget..........................................................................................................................72.3 Production budget.................................................................................................................72.4 cash budget............................................................................................................................72.5 Budgeted income statements.................................................................................................82.6 Budgeted balance sheet.........................................................................................................82.7 consultation with stakeholders..............................................................................................92.8 Key performance indicators .................................................................................................92.9 Recording reports................................................................................................................10ASSESSEMENT 3........................................................................................................................10COVERED IN PPT...................................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..................................................................................................................................
INTRODUCTIONIn any organisation there are various operations which are carried out such as sales,production, and many more. For them it is required that budgets shall be made so that they canbe managed in appropriate manner (Zimmerman and Yahya-Zadeh, 2011). By the help of themorganisation will be able to control its expenses and this will lead to profit maximisation. Alsothe variances will be identified which will be used in designing the plan for future. In this reportall the various budgets will be made and by that an understanding of them will be gained.ASSESSEMENT 11.1 Different Budgets and their principles.Budgets are the plans which shall be made in which it will be decided that how thedifferent operations shall be performed. All the objectives which are specified in it will have tobe attained within the prescribed time period. There are various types of budgets which are asfollows:Master budget: When all the aspects of the business are presented in combined mannerthen that will be known as master budget (Hofstede, 2012). By the help of this overallperformance of company can be evaluated.Operating budget: In this budget projections will be made in respect of various incomesand expenses which arise in business.Cash flow budget: All the transactions which will be related to cash will be entered in thisbudget and by this needs will be identified and fulfilled at appropriate time.Static budget: The budget in which there will be no effect of any change or can be saidthat it will remain same regardless of change in various factors will be covered in it.There are several principles which are associated with budgetary control and some ofthem are:All the activities will be coordinated as plan will be established in relation toperformance.Comparison will be made with the help of this between actual and budgeted amounts.Variances will be calculated and also reasons of them will be analysed.1
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