LESSON OBJECTIVE
Assessment Criteria AC 3.3 Prepare budgets according to the chosen budgeting method Below are questions pertaining to lesson 10. Please ensure to answer each question correctly. 1. What are the five uses of Budgets in an organization? 2. Incremental budgeting is done by adding amounts to the prior year’s budget based on the experience of the prior year and plans for the coming financial year. What factors do you think are also important to consider when using incremental budgeting? 3. What is activity based Budgeting?
5 Comments
christopher Cameron
11/16/2016 08:57:32 pm
1) A few uses of budgeting in the organization include assist planning, encourage cross-departmental communication, exercise control over resources, provides motivation to managers and measuring performance (The Use of Budgets in Organisations, n.d.).
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11/20/2016 01:44:57 pm
1. What are the five uses of Budgets in an organization?
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Dalene cushnie
11/20/2016 07:36:42 pm
1, Facts-Budgets usually represent a detailed analysis of how a company expects to spend money in future time periods.
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Dalene cushnie
11/20/2016 07:45:58 pm
2, It assumes only minor changes from the preceding period, when in fact there may be major structural changes in the business or its environment that call for much more significant budget changes. Since an incremental budget allocates most funds to the same uses every year, it is difficult to obtain a large funding allocation to direct at a new activity. Thus, incremental budgeting tends to foster a conservative maintenance of the status quo, and does not encourage risk taking.
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Taisha Lewis
11/21/2016 07:26:25 am
1.
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