CASE STUDY MAF 420 Budgeting and Budgetary Control

Jun 18th, 2015
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Alabama State University
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The amount of profit that a business can earn depends on the amount of costs incurred and revenue generated. The amount of profit can be computed by deducting cost from revenue. Cost has a negative relationship with profit but revenue has positive relationship with profit. The nature of this relationship implies that a business can decrease cost and/or increase revenue will be able to increase profit. Thus, manager can plan to achieve the desired performance by making changes in fixes cost, variable cost, selling price and sales volume. It is essential for any organization to plan before carrying out any activity. Hence, the planning functions details the activities carried out followed by any cost implications expressed in quantitative terms. The assignment of future costs and expected revenues against intended activities within a certain period of time is known as budgeting.

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CASE STUDY MAF 420Budgeting and Budgetary ControlPREPARED FOR:PUAN NOR ASYIQIN BINTI ABUPREPARED BY:ARAMI FAYADH HASNOL AZMI2011805788AHMAD NABIL MOHD KHISAM2011846868NUR FARZANA MOHD ZAINI2011461498CLASS OF:M1AC2204CINTRODUCTIONThe amount of profit that a business can earn depends on the amount of costs incurred and revenue generated. The amount of profit can be computed by deducting cost from revenue. Cost has a negative relationship with profit but revenue has positive relationship with profit. The nature of this relationship implies that a business can decrease cost and/or increase revenue will be able to increase profit. Thus, manager can plan to achieve the desired performance by making changes in fixes cost, variable cost, selling price and sales volume.It is essential for any organization to plan before carrying out any activity. Hence, the planning functions details the activities carried out followed by any cost implications expressed in quantitative terms. The assignment of future costs and expected revenues against intended activities within a certain period of time is known as budgeting.Any organization will prepare budgets to ensure that activities are accountable with detailed expenses and revenue for easier tracking back. Budgeting is the process of allocating funds and exercising control over the use of resources. It is not merely forecasting or estimating or prediction of a particular event. It is a plan. In simple terms, budgetin

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