Assignment on Performance Management (pdf)
Added on 2021-04-17
14 Pages3189 Words23 Views
RUNNING HEAD: PERFORMANCE MANAGEMENTBudgeting
Performance management1ContentsIntroduction...........................................................................................................................................2Requirement 1.......................................................................................................................................2Requirement 2.......................................................................................................................................5Requirement 3.......................................................................................................................................6Requirement 4.......................................................................................................................................6Conclusion...........................................................................................................................................11References...........................................................................................................................................12
Performance management2Introduction The term budgeting is defined as a process of planning the use of cash and other resources forfuture projects. A business prepares various types of budgets and planned its expenditures and cash requirements for the projects that are going to happen in the near future. Types of budgets include cash budget, sales and production budgets and the budgets for different typesof business overheads (Weikart, Chen and Sermier, 2012). This report contains preparation various budgets along with the budgeted financial statements for the company which will be incorporated on 1st January 2019, named as CooperWorld Ltd. It also explains the ways by which CooperWorld can enhance its cash budget.Requirement 1(a) Production budget CooperWorldLtd. ProductionBudget JanFebMarAprMayJunJulAugSepOctNovDecTotalBudgeted units 1201401601802002202402602402401601802340Add: closing inventory0000000000000Total requirement 1201401601802002202402602402401601802340Less: opening inventory 0000000000000Required production 1201401601802002202402602402401601802340Note:It is assumed that there will be no opening and closing inventory because the company will be producing only that much units which are required for sales (b) Sales Budget CooperWorld Ltd. Sales
Performance management3Budget JanFebMarAprMayJunJulAugSepOctNovDecTotalBudgeted sales units1201401601802002202402602402401601802340Selling Price per unit300300300300300300300300300300300300Budgeted sales (£)360004200048000540006000066000720007800072000720004800054000702000(c) Material Purchase Budget CooperWorldLtd. MaterialPurchase Budget JanFebMarAprMayJunJulAugSepOctNovDecTotalProduction 1201401601802002202402602402401601802340Material Per unit1111111111111Production needed1201401601802002202402602402401601802340Add: closing inventory0000000000000Total needed1201401601802002202402602402401601802340Less: opening inventory 0000000000000Material to be purchased1201401601802002202402602402401601802340Cost per unit404040404040404040404040Budgeted purchases (£)480056006400720080008800960010400960096006400720093600Note:It is assumed that material per unit required for producing desired units is £1 for each and every month. (d) Direct Labour budget CooperWorldLtd. Direct LabourBudget JanFeMaAprMaJunJulAuSeOcNoDeTot
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