Question A
I. Discuss the feasibility of forecasting by comparing projections with market growth and development.
II. The finance policies and procedures are there to help the business create quality budgets. Evaluate the effectiveness of the finance policy and procedures in creating quality budgets.
III. Critically analyse the legal and ethical issues you need to consider while setting a budget?
IV. With reference to the finance policies and procedures, how would you identify any financial risks arising from the budget creation process?
V. What protection strategies could you propose that would reduce the risks identified in question (IV) above?
Question B
I. List four budget forecasting techniques. For each technique evaluate how effective it is in developing accurate budgets.
II. Review the term corporate governance.
i. What are the key principles and practice of corporate governance?
ii. How would the principles and practices be implemented when businesses create budgets and forecasts?
III. What are the key principles of accrual accounting and double entry bookkeeping?
IV. Identify the types of data and information that would be required to prepare budgets and forecasts. Evaluate each type of data for its usefulness in budgeting and forecasting.
V. Identify 4 sources of data and information that could be used to prepare budgets and forecasts. Evaluate each source of data for its usefulness in budgeting and forecasting.
VI.
i. What is the purpose and objectives of creating budgets and forecasts?
ii. Review how Key Performance Indicators (KPIs) and milestones are developed.
iii. Critically analyse how KPIs and milestones are relevant to budgets and forecasts.