Discussion 1
1. Explain 2 different types of budgets, and discuss why a company would choose one type of budget over another.
2. Discuss the advantages and disadvantages of the zero-based budgeting approach.
Discussion 2
Costs can be categorized in various ways, including the following:
1. Fixed versus variable costs
2. Relevant versus irrelevant costs
3. Direct versus indirect
Discuss the following in your main Discussion:
1. Why is it important for a company to know the categorization of each cost?
2. Provide an example of each of the cost categorizations above.
3. Why is it important to compare actual cost and budgeted cost?
Homework
Details
You were recently hired as Management Director of the new I Can Business Incorporated (ICBI). You have been asked to establish policies and systems for the business. The first one you choose to work on is a financial reporting system.
For this homework, you must develop a 4 to 5 pages memo that you will deliver to the ICBI Board of Directors. You will describe what a financial reporting system is and explain how the management team at 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:
1. Describe the meaning and the components of a financial reporting system.
2. Explain the budget process.
3. Describe a budget contingency plan.
4. Give an example of financial guidelines that ICBI should follow to successfully plan for finance management.
a. Identify and describe at least 5 basic financial guidelines.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.