For this assignment, you must develop a 3-pages memo that you will deliver to the board of directors...

Question

For this assignment, you must develop a 3-pages memo that you will deliver to the board of directors of ICBI. You will describe what a financial reporting system is and explain how management of ICBI should use an activity based budget instead of an operating budget. Be sure to explain the similarities and the differences of the two. Finally, give examples of budget guidelines for ICBI. You must answer the following questions:

Describe the meaning and the components of a financial reporting system.
Explain the budget cycle and process.
Write a description of how management should use an activity based budget instead of an operating budget
- Explain the similarities and differences of the two budgets
Give an example of budget guidelines that ICBI should follow in order to successfully plan.
- Identify and describe at least 5 basic budget guidelines.

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.

Robert · Accepted Answer

1 
 
1) Introduction  
In any organization or industry, whether it is based on manufacturing or services related have 
multiples departments in terms of operating. Probably, without these channels or departments, no 
business can work properly. In-fact, through these multiple department an organization is able 
for performing and accomplishing goals effectively. In this context, the function of each 
department is different and it may be not interconnected completely. But at last, they all can 
connect through single thread that is accounting and Finance department of the organization. It is 
necessary for an organization to keep and maintain the records of accounting and financial 
related affairs which are to be submitted to the various stakeholders as financial report.  
2) Meaning and Components of Financial Reporting System  
Further, reports are of two types that are; financial report i.e. a report which is submitted to 
the stakeholders and management related report which is given to the internal management in 
order to gain positive outcomes effectively. Financial reporting includes all financial transactions 
or affairs and information related to the company performance and financial position for a 
specific period of time. The final report of financial information can be provided to the various 
stakeholders (investors, creditors, debt providers, public and government or government 
agencies). Generally, the financial report can be published by the company quarterly, half yearly, 
annually as per the company and government guidelines. 
 The financial report is an important evidence for an organization in terms of growth and 
success because the report describes the exact status of financial performance of the company. 
For large organization, maintaining a financial report becomes a complex thing but however, it 
provides huge benefit in spite of all these confronting issues of managing the finance.

For this assignment, you must develop a 3-pages memo that you will deliver to the board of directors of ICBI. You will describe what a financial reporting system is and explain how management of ICBI...

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