# Budget Planning and Control

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## Description

1. Assignment: Budget Planning and Control Due Week 9 and worth 200 points Before approaching this assignment, be sure that you have watched the following video. Babycakes, a specialty bakery, is the company that will be considered for all parts of your budget planning and control report. For this assignment, you will develop a three to four (3 – 4) page paper in which you address the following.
1. Briefly discuss the ways a realistic budget will benefit the owner of Babycakes versus having no budget at all. Be sure to use Babycakes as the company and any specific product details in your explanation.
2. Prepare a sales budget for the LA Babycakes store for the 4th quarter of 2016. Present the number of units, sales price, and total sales for each month; include October, November, and December, and a total for the quarter. Use one-half of the Valentine’s Day sales as the basis for a usual day in the new quarter. Use 30 days for each month. Calculate the total sales for each month for October, November, and December.
3. Create three (3) new products, one (1) for each of the three (3) holiday seasons in the 4th quarter. Estimate the sales units, sales price, and total sales for each month. Describe the assumptions used to make these estimates. Include an overview of the budget in the report, presenting the actual budget as an appendix with all data and calculations. Add these amounts to your sales budget.
4. The owner of Babycakes is interested in preparing a flexible budget rather than the static budget she currently uses. She does not understand why, when sales increase, her static budget often shows an unfavorable variance. Explain how a flexible budget will overcome this problem. Use the details of your newly prepared budget for the 4th quarter of 2016 to address her concern.
5. Imagine that Babycakes is facing a financial challenge that is causing the actual amount of money that it spends to become significantly more than its budgeted amount. Include a discussion of your own unique cause of the overspending. Explain the corrective actions needed to address these challenges.
6. Integrate relevant information from at least three (3) quality academic resources in this assignment. Note: Please do not use your textbook as an academic resource. Also, Wikipedia and other Websites that are unreliable do not qualify as academic resources.
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
• An abstract is not required.
The specific course learning outcomes associated with this assignment are:
• Evaluate management control systems and examine their relationship with accounting and planning, including feedback and non-ﬁnancial performance measurements.
• Evaluate decision-making tools for capital investments, budgeting, and budgeting controls.
• Analyze financial accounting tools and techniques that convert financial accounting data into information for decision making.
• Use technology and information resources to research issues in financial accounting for managers.
• Write clearly and concisely about financial accounting using proper writing mechanics.
Grading for this assignment will be based on the quality of your responses, logic and organization of the paper, and language and writing skills. Please review the Rubric for the Assignment: Budget Planning and Control.
2. By submitting this paper, you agree: (1) that you are submitting your paper to be used and stored as part of the SafeAssign™ services in accordance with the Blackboard Privacy Policy; (2) that your institution may use your paper in accordance with your institution's policies; and (3) that your use of SafeAssign will be without recourse against Blackboard Inc. and its affiliates.

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Attached.

Running Head: BUDGETARY PLANNING AND CONTROL

Budgetary Planning and Control
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Instructor
Institutional Affiliation
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BUDGETARY PLANNING AND CONTROL

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Introduction
A budget refers to a financial document that is used by companies to project their income
and expenditures over a given period. The budgeting process is conducted by corporations to
determine or estimate whether the company can continue to operate smoothly by its projected
income and expenditures over a stipulated period (Dunk, 2011). The budget serves many
purposes within an organization, and as such, it is an effective planning tool that every company
should be able developed within its business operation. It is imperative to note that budgeting is
an integral part of the organization activity since it outlines the plan of how the company intends
to spend its scarce resources to achieve its goals and objectives. As a planning tool, every
company drafts its operational budget and financial budget to establish a framework of how the
company will spend its resources and how the generated income will be utilized to facilitate
Importance of realistic budget for Babycakes
A realistic budget will highly benefit the owner of Babycakes- a specialty bakery
company. One of the most significant benefits that would b...

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