Response to the following questions:
Knowledge gathering: Prepare Budgets, Forecast Estimates, documenting budgets and monitoring outcomes To be deemed satisfactory, you must answer all of the below questions:
Define budgets. List and explain the expenditure and revenue items usually included in a budget.
Define the following:
Fixed and flexible budget n Fixed cost and variable cost . Breakeven point t Types of budgets
Explain double entry accounting. Explain the difference between cash accounting and accrual accounting.
Explain the role of budgets in helping an organisation reach its objectives.
List five controls that could be used to monitor an organisation's budget, also briefly explain the importance of variance analysis.
List four steps associated with preparing and document budgets and forecasting estimates.
Exptain why stakeholders shoutd be included in the discussion and nelotiations of the budget. List stakeholders that have a stake in the outcome of the budget.
What are budget performance indicators? In addition, explain their role of performance indicators in managing budgets.
What are the reasons why Cash Flow Risk may occur? How can Cash Flow Risk be reduced?
Every business needs to develop Budgets periodically, keeping this in mind, discuss what could be the budget objectives?