1. The definition of budget and the different types of budgets that could be used by different departments within the company and their usefulness for different departments.
Topic 2: the definition of budgetary control and the advantages and disadvantages of different types of planning tools that the company could use for budgetary control. (You need to mention at least two tools).
Topic 3: based on the given production budget by the company, analyze the use of different planning tools and their application for preparing and forecasting such budget for next month.
|
Original budget 1/12 |
Actual figures 30/12 |
|
|
Output |
1,000 units |
900 units |
|
£ |
£ |
|
|
Sales revenue |
100,000 |
90,000 |
|
Raw material |
40000 (4000 meters) |
37000 (3700meters) |
|
Labour |
20000 (5000 hours) |
17575 (4750 hours) |
|
Fixed overhead |
20,000 |
20,000 |
|
Operating profit |
20,000 |
15,425 |
