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For this assignment, you will decide what type of budget to implement for a start-up company. Write a 3–4 page paper in which you: Summarize the type of manufacturing company you plan to start up and...

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For this assignment, you will decide what type of budget to implement for a start-up company.

Write a 3–4 page paper in which you:

  • Summarize the type of manufacturing company you plan to start up and determine how you will design the value chain for your manufacturing company.
  • Describe the type of budget you plan to implement in your company and outline the budgeting review steps necessary to ensure that your company reaches the financial forecast.
  • Select at least four specific benchmarks you will utilize in your company. Explain the benchmarks selected and their benefits to your company.
  • Explain the type of cost system you plan to implement in your company and identify any major challenges in implementing your cost system. Suggest a way to overcome the identified challenges.
  • Integrate at least three quality resources using in-text citations and a reference page in your assignment. Note: Wikipedia, Investopedia, and similar websites do not qualify as quality resources. UseBasic Search: Strayer University Online Libraryor the iCampusUniversity Library Researchpage for your research.
Answered Same Day May 26, 2021

Solution

Preeta answered on May 29 2021
106 Votes
Background:
The start-up plan is to start a textile manufacturing business. For the time being it is assumed that the company will operate at a local level. So physical value chain will be suitable for the company. The value chain will be as follows: the fi
e need to be collected; the fi
e need to be twisted or spanned; after that weaving and knitting is to be done; then the product will be bleached, dyed; planned printing will be provided and the product will turn into finished goods; finishing make ups and touch ups is to be provided before finally retailing the product.
Type of Budget:
Budget is the estimation of revenue and expenditures for a company. A long-term surplus budget will be formed for the company. For start-ups long term budget is necessary at least for three years. Surplus budget is to be made since business operates for profit and so income should be more than the expenses. A sample income statement budget of the company is as follows:
    Particulars
    Amount ($)
    Revenue
    50000
    Cost of sales
    10000
    Wages
    10000
    Overhead charges
    10000
    Rent
    1000
    Electricity Charges
    1000
    Administrative Expenses
    1000
    Interest Charges
    1500
    Marketing expenses
    2500
    Other operating charges
    2000
    Depreciation for machinery
    1000
    Net profit
    10000
Budget review Steps:
There are certain things which are to be considered while reviewing a budget process (Larson & Chang, 2016, p. 112), which are as follows:
· It is to be checked if the numbers are realistic as...
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