Economics Answers

How is internal competition between projects/departments competing for funding allocated and what role does the budgeted statement of financial performance play?

1. The CEO is trying to manage the level of motor vehicle costs which are putting pressure on the business. you have completed next year's master budget including motor vehicle expenses. What management controls would you suggest in your notes accompanying the master budget for approval?

2. The CEO has asked for your input into establishing budget timelines. briefly explain how you can use the concept of a budget calendar in describing reporting timelines to reply to the CEO?

when are rolling budgets appropriate and inappropriate? what other factor must be considered when adopting a policy for using them?

prepare a request for the budget revision form to accompany the variance report. note that the request is due to a new program which had an original incorrect assumption

Prepare a budget versus actual variance analysis report for the end of March for the community services organisation Discoverer. They made an original assumption based on the respite manager’s undertaking that a new food expense would be year to date $900 with the actual amount spent $2,700 at the 31.3.20XX. Include food for this month separately on the report for $300 actual and only $100 budgeted. Include whether the amount is favourable (F) or unfavourable (U), show the percentage (%).

The business Challenger Co. is expanding. The marketing manager advises the junior accountant that a new sales region will double the revenue assumption and that there are no foreseeable expenditures. What is the significance of the revenue assumption to completing the sales forecast? What steps should the junior accountant take in preparing the assumption for the sales forecast?

Build a production budget for the current month using the following information:

Opening units 2,000.
Ending units 650.
Forecast sales 11,350.

Voyager is a Telco with an innovation that will generate it significant market share growth. This will result in many new customers in several new areas. Telco is aiming for much higher incomes. Consequently it has adopted an organisational expansion policy seeking to maximize income. Voyager is about the revenue forecast but unsure of their total budget expenses.

Explain to Voyager executives the importance of considering related expenses and discuss some of their controls as planning for its aggressive revenue expansion policy.

1. What happens to assumptions over time and what makes the best budget assumptions and what happens to invalid assumptions?

2. Your company Apollo is second in the manufacturing industry. The market leader has introduced an innovative product which is expected to wipe out market share for rovers (one of Apollo’s key products) which currently bring in a quarter of revenue and are responsible for a third of expenditures. Revenue forecast and budget expense revision is necessary.

What impact will the market leader’s actions have on your revenue forecast and expense budget:

If total original revenue assumptions were forecast at $700,000 and total expense assumptions added to $1,000,000?
What would the impact on financial performance be in dollars?

What are the two types of information available to complete the budget? Describe the benefits and disadvantages of them and give an example of each.