Accounting Assignment: Budgeting, Sales, and Overspending Issues

This accounting assignment report analyzes the budgeting practices of Babycakes Bakery Services. It covers the importance of budgeting, the creation of a quarterly sales budget for 2016, and the impact of product diversification on sales. The report includes a detailed breakdown of sales figures, both before and after the introduction of new products (Apple Cakes, Angel Cakes, and Brownies), and explores the concept of a flexible budget. Furthermore, the assignment addresses potential overspending issues, providing insights into the causes and possible corrective actions, such as managing raw material costs and implementing long-term contracts. The report uses financial data and analysis to demonstrate key accounting principles and their practical application within a business context, supported by relevant academic references.