Assignment Type:Individual Project
Deliverable Length:3–4 pages Points Possible:
125 Due...

Question

Assignment Type:Individual Project 
 Deliverable Length:3–4 pages Points Possible: 
125 Due Date:1/20/2013 11:59:59 PM CT  You are a manager in a fictitious company of your choice. Your director has 
asked you to explain to the department staff the different types of budgets and 
techniques in order to provide an overall understanding.
For this assignment, you must develop a 2 to 3-page narrative that you will 
deliver to the department staff and director explaining the different kinds of 
budgets. Please select or make up your company and its purpose. You will also 
recommend which type of budget should be used and which budgeting technique 
would best fit the company. Using an income of 1 Million per year, you must 
answer the following questions:

What are the various kinds of budgets? Please explain each.
Which type of budget is best for your selected company?
Which type of calendar year will you choose and why?
Remember to use the library or other credible resources to support your 
argument. Be sure to cite your sources using the correct standard of APA.

David · Accepted Answer

BUDGETS 
Preparing a budget is very important for the profitability and success of any organization. The 
external and internal environment is very turbulent and it becomes necessary for firms to prepare 
themselves for the changing environment. Budgeting is method of forecasting the future. A 
company prepares various budgets to estimate its activities in future. Yes it involves a lot of time 
and expense, but at the same time it is very important to prepare budgets. Budgets are used to 
estimate all the revenues and costs and then plan accordingly. Planning cannot be done without 
preparing budgets. Another important use of budgets is that it is very useful in estimating the 
performance. Budgets are used as standards and can be compared with the actual results to 
calculate the variance. A company can only improve if the actual performance meets the desired 
performance. But if there are no budgets, there are no desired performances estimated by the 
company. Hence, the company has no scope for improving the actual results. With budgets, the 
company can compare standard with actual and then take necessary control actions.  
There are various types of budgets depending upon the requirement of the organization; 
collectively they are called as the master budget. Master budget is the summary of various plans 
of company. Master budget includes sales budget, purchase budget, raw material budget, labor 
budget, cash budget, Selling and admin budget, manufacturing overhead budget.

Assignment Type: Individual Project Deliverable Length: 3–4 pages Points Possible: 125 Due Date: 1/20/2013 11:59:59 PM CT You are a manager in a fictitious company of your choice. Your director has...

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