Balance Scorecard Implementation and Strategy
Added on 2020-01-21
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MANAGEMENTACCOUNTING
TABLE OF CONTENTSTASK 3............................................................................................................................................3a) Type of budgets and their advantages and disadvantages.......................................................3b) The process of preparing budgets...........................................................................................3c) Pricing strategies.....................................................................................................................3TASK 4............................................................................................................................................4a) Balance score care approach and describing the implementation of a balance score card.....4I) Using Balance Score Card (BSC) to identify and respond financial problem........................4ii) Use of Balance Score Card to improve the financial governance and development ofeffective strategies.......................................................................................................................5REFERENCES................................................................................................................................6
TASK 3a) Type of budgets and their advantages and disadvantagesThe budget is one of the most important methods which are used by the organisation formaking decisions regarding to investment. Budget can be defined as that process that helps thecompany in estimating revenues, cost and resources that are used over some particular timeperiod. For this, Imda tech has considered various types of budgets that have some advantagesand disadvantages and are discussed as follows:- Types of budgetsOperational budget- It is used for preparing the routine business function. It iscategorised into two parts are revenue and cost for presents company profitability andexpenses that are incurred at a specific time period. The benefit from operational budgetis that it helps in keeping records of business transaction related to cost and revenue in awell manner (Chenhall and Moers, 2015). Beside this, advantages of operational budgetare that it shows accurate information of the budget. For this, it facilitates the firm tocompare their performance with the previous year data. Cash flow budget- It is that type of budget that are summarised into cash inflow andcash outflow of a company Imda tech prepares cash budget for predicting about theircapability and also monitors budget for identifying the short falls. Therefore, the mainbenefit is that it suggests inventory levels and production cycles so that they get resourcesfor a company.Master budget- It is that type of budget which provides accurate information that helpsthe company to determine its net profit in financial year effectively. The demerits ofmaster budget are that it is not reliable in terms of cash and sales. Advantages and disadvantages of budgets 1.Operating budgets: AdvantagesThe main benefits of operating budgets are that it keeps record and track the entirebusiness. It helps the management of a company to tracking or experiencing issues arise within theworkplace.
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