JUST DO QUESTION 10 1 When you are preparing a budget where

JUST DO QUESTION 10

1. When you are preparing a budget where could you gather information and data from? 2. How could you estimate parameters for your budget? 3. What are the four stages involved in developing a budget? 4. List and describe the 4 most common budgeting approaches. 5. You have discussed with the human resource manager the new budget. Why is it now important that you incorporate their suggestions and make the modifications to the budget promptly? 6. What types of resources could be allocated in a budget? 7. To ensure effective monitoring and reporting of budgets what do you need to do? 8. What are the key processes to effectively manage approved budgets? 9. You will need to prepare financial reports for management. What do reports answer? 10. Who would you provide budget and financial reports to?

Solution

Answer 10

Budgets Reports are primarily meant for management which shows the planned performace, actual results and deviations along with measures for correcting deviation. These may related to sales, production, expenses and are meant for use by managers as well as executives responsible for sales and production related activities.

Financial reports basically refer to annual financial statements which are prepared and presented to shareholders. These enable the shareholders to assess how well the company has performed in the year under review. These contain only the actual results and not the planned performance. In some cases, certain financial reports (other than Annual Financial Reports) are prepared for management\'s review and decision making also.