Learning Objectives for Course.
1. Develop quantitative skills necessary to read, interpret and perform the calculations for the accounting reports involved in cost control and profit planning.
2. Evaluate and identify financial strengths and weaknesses of a business through appropriate conceptual analysis.
3. Analyse information and knowledge effectively in order to develop meaning to solve complex problems and make decisions ;
Guidelines for assignment
- This is an individual assignment
- Ground your answer in relevant theory
- Plagiarism and reproduction of someone else's work as your own will be penalized
- Make use of references, where appropriate - Use Harvard or APA referencing method.
- Late submission are not accepted
- Structural elements should include an introduction, main body, and a conclusion
- Weight - 50%
- Word count guidance : question 1 1000, question 2 n/a
- Type of assignment: Excel Assessed Work Folder and Business Report
- Start / Finish : Week 5 - 6
- Learning Outcome Assessed: 3,4
Question 1 - Planning and Control
Write an essay of 1000 words demonstrating your conceptual understanding of the following questions.
1. Is budgeting used primarily for scorekeeping, attention, directing or problem solving?
2. How do strategic planning, long range planning and budgeting differ?
3. Why is budgeted performance better than past performance as a basis for judging actual results?
4. What are the major benefits of budgeting?
5. Is budgeting an unnecessary burden for day to day problems? Explain your answer.
6. Why is the sales forecast the starting point for budgeting?
7. How do Spreadsheets aid the application of sensitivity analysis?
Question 2 - Budget Preparation - Intellectual and Practical Skills
Application of learning:
Prepare the following budgets for the 6 months ending September 2013. You are required to use Excel spreadsheets, which can be copied into word once you finish, should you wish. A template is available for you to use as a basis.
a) Sales budget
b) Cash Budget
c) Debtors Budget
d) Creditors Budget
e) Production Cost Budget
f) Raw Materials and finished goods Budget
g) Profit and Loss Account Budget
h) Balance Sheet Budget
Draw conclusions from your budgets and prepare a short management report.Europe Ltd
Balance Sheet as at 31st March 2013
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Fixed Assets
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100,000
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Current Assets
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Debtors (Feb mom March E14000)
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24,000
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Stock Raw Materials
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9,000
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Finished Goods
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13,000
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46,000
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Current Liabilities
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Creditors (Feb E8000, March E10000)
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(18,000)
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Bank
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(3,000)
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(21,000)
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Net Current Assets / Working Capital
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25,000
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NET ASSETS
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125,000
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Financed by:
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Share Capital
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100,000
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Profit and Loss
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25,000
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TOTAL SHAREHOLDERS FUNDS
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125,000
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