SlideShare a Scribd company logo

Cambridge a level budgets

•
•
Sanjaya Jayasundara
Sanjaya Jayasundara

Budget : The financial plan for a short period of time: Individual Budgets : Purchases Budget: Production Budget: Sales Budget: Labour Budget: Trade Receivables Budget: Trade Payables Budget: Inventory Budget: Master Budgets: Cash Budget: Budgeted Income Statement : Budgeted Statement of Financial Position: Evaluation of Budgets ( Advantages and Disadvantages of Budget): recognize the effect of limiting factors on the preparation of budgets: prepare a flexed budget statement: entify and explain the causes of differences between actual and flexed budgeted data • make business decisions and recommendations using supporting data • discuss the behavioural aspects of budgeting

Education
1 of 16
Download to read offline
Budgets 1 Accounting with Sanjaya Budgets Sanjaya Jayasundara B.Sc.(Finance) Sp. University of Sri Jayewardenepura, Investment Advisor, International School Teacher
Budgets 2 Accounting with Sanjaya Content Budgeting and budgetary control Introduction. Types of budgets Master budget Advantages and disadvantages of budgets The effect of limiting factors on the preparation of budgets Flexed budgets Make business decisions Extra readings Past paper questions. Model questions. Summary Syllabus according to Cambridge 2.2 Budgeting and budgetary control Candidates should understand the need for and benefits of a budgetary control system to an organisation. Candidates should be able to: • discuss the advantages and disadvantages of a budgetary control system to an organisation • prepare the following budgets: sales, production, purchases, labour, trade receivables, trade payables, cash, Master budget • recognise the effect of limiting factors on the preparation of budgets • prepare a flexed budget statement • identify and explain the causes of differences between actual and flexed budgeted data • make business decisions and recommendations using supporting data • discuss the behavioural aspects of budgeting.
Budgets 3 Accounting with Sanjaya Introduction A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Advantages of a budgetary control system to an organisation Allows targets to be set Helps to plan / control the use of resources Helps with decision-making Enables regular variance analysis Identifies limiting factors Informs all departments of a common goal Improves communication between managers and departments Improves co-ordination between departments Provides clear areas of responsibility Helps to motivate employees Disadvantages of a budgetary control system to an organisation …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… Types of budgets …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… What is budgetary control? …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………
Budgets 4 Accounting with Sanjaya Past Paper Questions May/ June 2019 – Variant 32 Did you know? A flexed budget. is a budget prepared to show the revenues, costs and profits that should have been expected from the actual level of production and sales
Budgets 5 Accounting with Sanjaya October/ November 2018 – Variant 32
Budgets 6 Accounting with Sanjaya October/ November 2018 – Variant 33
Budgets 7 Accounting with Sanjaya May/ June 2018 – Variant 31/33 Expert tip: A cash budget might show a negative cash flow at the end of a time period. This is possible as cash budgets also include bank transactions.
Budgets 8 Accounting with Sanjaya Extra Readings… Limitations of Budgetary Control:  Prediction of Uncertain Future: Budgeting is a process of forecasting and estimation. ...  Changes of Conditions: Budgets are prepared on the basis of certain prevailing conditions. Complacence, Difficulty in Coordination, Conflict among Different Departments: www.accountingnotes.net › cost-accounting › budgetary-control-meaning-o... Master Budgets …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
Budgets 9 Accounting with Sanjaya February/March 2018 – Variant 32 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
Budgets 10 Accounting with Sanjaya October/ November 2017 – Variant 32 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
Budgets 11 Accounting with Sanjaya October/ November 2017 – Variant 33 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
Budgets 12 Accounting with Sanjaya May / June 2017 – Variant 31/33 May / June 2017 – Variant 32 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
Budgets 13 Accounting with Sanjaya October/ November 2016 – Variant 32 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
Budgets 14 Accounting with Sanjaya October/ November 2016 – Variant 33 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
Budgets 15 Accounting with Sanjaya February/March 2016 – Variant 32
Budgets 16 Accounting with Sanjaya Now test yourself: 1. Explain the term ‘budget’. 2. Identify five functions of budgeting. 3. Explain the term ‘budgetary control’. 4. Explain the term ‘master budget’. 5. Complete the following sentence: A master budget draws together individual budgets and is summarized by the preparation of an …………………………………. Statement and a statement showing the …………………………………………. Of the business. 6. Complete the following formula for a trade payable budget: Opening balance of trade payable + ? + ? = Closing balance of trade payables 7. Explain why the preparation of a cash budget is vital to the decision making of any business. 8. Is depreciation entered in a cash budget? Explain your answer. 9. List three items that might appear in a budgeted income statement but would not appear in a cash budget. 10. Explain the term ‘principle budget factor’. 11. Identify two principal budget factors that could prevent the desired outcomes for a business. 12. Explain what is meant by a flexed budget. All the best children…! I wish you an enjoyable learning session...! Sanjaya Jayasundara Study well and be a good citizen to motherland Sri Lanka…!

Recommended

Cambridge a level standard costing
Cambridge a level standard costingCambridge a level standard costing
Cambridge a level standard costingSanjaya Jayasundara
 
Cambridge a level standard costing
Cambridge a level standard costingCambridge a level standard costing
Cambridge a level standard costingSanjaya Jayasundara
 
Cambridge A Level Business Purchase and Merger
Cambridge A Level Business Purchase and MergerCambridge A Level Business Purchase and Merger
Cambridge A Level Business Purchase and MergerSanjaya Jayasundara
 
Cambridge a level investment appraisal
Cambridge a level investment appraisalCambridge a level investment appraisal
Cambridge a level investment appraisalSanjaya Jayasundara
 
Cambridge a level auditing.
Cambridge a level auditing.Cambridge a level auditing.
Cambridge a level auditing.Sanjaya Jayasundara
 
Cambridge a level Activity Based Costing (ABC)
Cambridge a level Activity Based Costing (ABC)Cambridge a level Activity Based Costing (ABC)
Cambridge a level Activity Based Costing (ABC)Sanjaya Jayasundara
 
Cambridge a level cash flow statement
Cambridge a level cash flow statementCambridge a level cash flow statement
Cambridge a level cash flow statementSanjaya Jayasundara
 
Cambridge a level budgets
Cambridge a level budgetsCambridge a level budgets
Cambridge a level budgetsSanjaya Jayasundara
 

Recommended

Cambridge a level standard costing
Cambridge a level standard costingCambridge a level standard costing
Cambridge a level standard costingSanjaya Jayasundara
 
Cambridge a level standard costing
Cambridge a level standard costingCambridge a level standard costing
Cambridge a level standard costingSanjaya Jayasundara
 
Cambridge A Level Business Purchase and Merger
Cambridge A Level Business Purchase and MergerCambridge A Level Business Purchase and Merger
Cambridge A Level Business Purchase and MergerSanjaya Jayasundara
 
Cambridge a level investment appraisal
Cambridge a level investment appraisalCambridge a level investment appraisal
Cambridge a level investment appraisalSanjaya Jayasundara
 
Cambridge a level auditing.
Cambridge a level auditing.Cambridge a level auditing.
Cambridge a level auditing.Sanjaya Jayasundara
 
Cambridge a level Activity Based Costing (ABC)
Cambridge a level Activity Based Costing (ABC)Cambridge a level Activity Based Costing (ABC)
Cambridge a level Activity Based Costing (ABC)Sanjaya Jayasundara
 
Cambridge a level cash flow statement
Cambridge a level cash flow statementCambridge a level cash flow statement
Cambridge a level cash flow statementSanjaya Jayasundara
 
Cambridge a level budgets
Cambridge a level budgetsCambridge a level budgets
Cambridge a level budgetsSanjaya Jayasundara
 
Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...
Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...
Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...Sanjaya Jayasundara
 
Cambridge a level joint venture
Cambridge a level joint venture Cambridge a level joint venture
Cambridge a level joint venture Sanjaya Jayasundara
 
Cambridge a level consignment accounts
Cambridge a level consignment accountsCambridge a level consignment accounts
Cambridge a level consignment accountsSanjaya Jayasundara
 
Cambridge a level investment ratios
Cambridge a level investment ratiosCambridge a level investment ratios
Cambridge a level investment ratiosSanjaya Jayasundara
 
Financial Statement and Depreciation
Financial Statement and DepreciationFinancial Statement and Depreciation
Financial Statement and DepreciationNakul Gaur
 
Partnership accounts
Partnership accountsPartnership accounts
Partnership accountsSanjaya Jayasundara
 
Edexcel igcse correction of errors
Edexcel igcse correction of errorsEdexcel igcse correction of errors
Edexcel igcse correction of errorsSanjaya Jayasundara
 
Clubs & Societies : Not for profit organisations
Clubs & Societies : Not for profit organisationsClubs & Societies : Not for profit organisations
Clubs & Societies : Not for profit organisationsSanjaya Jayasundara
 
Separate Financial Statements by CA Alok Garg
Separate Financial Statements by CA Alok GargSeparate Financial Statements by CA Alok Garg
Separate Financial Statements by CA Alok GargAlok Garg I CA I CS I Dip.IFRS (UK) I CIFRS
 
Bank reconciliation statement
Bank reconciliation statementBank reconciliation statement
Bank reconciliation statementItisha Sharma
 
Consignment Accounts
Consignment AccountsConsignment Accounts
Consignment AccountsSanjaya Jayasundara
 
12.2 Cash vs Profit
12.2 Cash vs Profit12.2 Cash vs Profit
12.2 Cash vs ProfitVCE Accounting - Michael Allison
 
Incomplete records
Incomplete recordsIncomplete records
Incomplete recordsSanjaya Jayasundara
 
single entry system of book keeping
single entry system of book keeping single entry system of book keeping
single entry system of book keeping ABHIRAM POBBISETTY
 
As 1
As 1As 1
As 1mayankvns
 
Cambridge as level correction of errors
Cambridge as level correction of errorsCambridge as level correction of errors
Cambridge as level correction of errorsSanjaya Jayasundara
 
Profit and loss appropriation account
Profit and loss appropriation accountProfit and loss appropriation account
Profit and loss appropriation accountPRASANTH VENPAKAL
 
double entry for credit transactions
double entry for credit transactionsdouble entry for credit transactions
double entry for credit transactionsSanjaya Jayasundara
 
Goodwill valuation in accounting for partnership
Goodwill valuation in accounting for partnershipGoodwill valuation in accounting for partnership
Goodwill valuation in accounting for partnershipPankaj Saikia
 
cash flow statement
cash flow statementcash flow statement
cash flow statementbhanu vashishtha
 
The-New-Business-Kit-2016-2017 v1
The-New-Business-Kit-2016-2017 v1The-New-Business-Kit-2016-2017 v1
The-New-Business-Kit-2016-2017 v1Akshay Shah
 
2011 Spring Training Catalog
2011 Spring Training Catalog2011 Spring Training Catalog
2011 Spring Training Catalogmrhuelsmann
 

More Related Content

What's hot

Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...
Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...
Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...Sanjaya Jayasundara
 
Cambridge a level joint venture
Cambridge a level joint venture Cambridge a level joint venture
Cambridge a level joint venture Sanjaya Jayasundara
 
Cambridge a level consignment accounts
Cambridge a level consignment accountsCambridge a level consignment accounts
Cambridge a level consignment accountsSanjaya Jayasundara
 
Cambridge a level investment ratios
Cambridge a level investment ratiosCambridge a level investment ratios
Cambridge a level investment ratiosSanjaya Jayasundara
 
Financial Statement and Depreciation
Financial Statement and DepreciationFinancial Statement and Depreciation
Financial Statement and DepreciationNakul Gaur
 
Edexcel igcse correction of errors
Edexcel igcse correction of errorsEdexcel igcse correction of errors
Edexcel igcse correction of errorsSanjaya Jayasundara
 
Clubs & Societies : Not for profit organisations
Clubs & Societies : Not for profit organisationsClubs & Societies : Not for profit organisations
Clubs & Societies : Not for profit organisationsSanjaya Jayasundara
 
Bank reconciliation statement
Bank reconciliation statementBank reconciliation statement
Bank reconciliation statementItisha Sharma
 
single entry system of book keeping
single entry system of book keeping single entry system of book keeping
single entry system of book keeping ABHIRAM POBBISETTY
 
Cambridge as level correction of errors
Cambridge as level correction of errorsCambridge as level correction of errors
Cambridge as level correction of errorsSanjaya Jayasundara
 
Profit and loss appropriation account
Profit and loss appropriation accountProfit and loss appropriation account
Profit and loss appropriation accountPRASANTH VENPAKAL
 
double entry for credit transactions
double entry for credit transactionsdouble entry for credit transactions
double entry for credit transactionsSanjaya Jayasundara
 
Goodwill valuation in accounting for partnership
Goodwill valuation in accounting for partnershipGoodwill valuation in accounting for partnership
Goodwill valuation in accounting for partnershipPankaj Saikia
 

What's hot (20)

Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...
Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...
Clubs & societies cambridge a level tuition: Cambridge A Level Paper 3 No...
 
Cambridge a level joint venture
Cambridge a level joint venture Cambridge a level joint venture
Cambridge a level joint venture
 
Cambridge a level consignment accounts
Cambridge a level consignment accountsCambridge a level consignment accounts
Cambridge a level consignment accounts
 
Cambridge a level investment ratios
Cambridge a level investment ratiosCambridge a level investment ratios
Cambridge a level investment ratios
 
Financial Statement and Depreciation
Financial Statement and DepreciationFinancial Statement and Depreciation
Financial Statement and Depreciation
 
Partnership accounts
Partnership accountsPartnership accounts
Partnership accounts
 
Edexcel igcse correction of errors
Edexcel igcse correction of errorsEdexcel igcse correction of errors
Edexcel igcse correction of errors
 
Clubs & Societies : Not for profit organisations
Clubs & Societies : Not for profit organisationsClubs & Societies : Not for profit organisations
Clubs & Societies : Not for profit organisations
 
Separate Financial Statements by CA Alok Garg
Separate Financial Statements by CA Alok GargSeparate Financial Statements by CA Alok Garg
Separate Financial Statements by CA Alok Garg
 
Bank reconciliation statement
Bank reconciliation statementBank reconciliation statement
Bank reconciliation statement
 
Consignment Accounts
Consignment AccountsConsignment Accounts
Consignment Accounts
 
12.2 Cash vs Profit
12.2 Cash vs Profit12.2 Cash vs Profit
12.2 Cash vs Profit
 
Incomplete records
Incomplete recordsIncomplete records
Incomplete records
 
single entry system of book keeping
single entry system of book keeping single entry system of book keeping
single entry system of book keeping
 
As 1
As 1As 1
As 1
 
Cambridge as level correction of errors
Cambridge as level correction of errorsCambridge as level correction of errors
Cambridge as level correction of errors
 
Profit and loss appropriation account
Profit and loss appropriation accountProfit and loss appropriation account
Profit and loss appropriation account
 
double entry for credit transactions
double entry for credit transactionsdouble entry for credit transactions
double entry for credit transactions
 
Goodwill valuation in accounting for partnership
Goodwill valuation in accounting for partnershipGoodwill valuation in accounting for partnership
Goodwill valuation in accounting for partnership
 
cash flow statement
cash flow statementcash flow statement
cash flow statement
 

Similar to Cambridge a level budgets

The-New-Business-Kit-2016-2017 v1
The-New-Business-Kit-2016-2017 v1The-New-Business-Kit-2016-2017 v1
The-New-Business-Kit-2016-2017 v1Akshay Shah
 
2011 Spring Training Catalog
2011 Spring Training Catalog2011 Spring Training Catalog
2011 Spring Training Catalogmrhuelsmann
 
Linkage Training Programs: May-December 2011
Linkage Training Programs: May-December 2011Linkage Training Programs: May-December 2011
Linkage Training Programs: May-December 2011yavanian
 
Strategies for a High Performance Revenue Cycle
Strategies for a High Performance Revenue CycleStrategies for a High Performance Revenue Cycle
Strategies for a High Performance Revenue Cyclekarthik Venkilot
 
CPI_Guidebook_July_2008_OSD_FINAL
CPI_Guidebook_July_2008_OSD_FINALCPI_Guidebook_July_2008_OSD_FINAL
CPI_Guidebook_July_2008_OSD_FINALLeanleaders.org
 
QuickBooks Statement Writer 2012
QuickBooks Statement Writer 2012QuickBooks Statement Writer 2012
QuickBooks Statement Writer 2012Intuit
 
Optimizing the Benefits of EDM and SOA Strategies Through Coordination
Optimizing the Benefits of EDM and SOA Strategies Through CoordinationOptimizing the Benefits of EDM and SOA Strategies Through Coordination
Optimizing the Benefits of EDM and SOA Strategies Through CoordinationKeith Worfolk
 
DMA (Direct Marketing Association) Email Tracker Study 2017
DMA (Direct Marketing Association) Email Tracker Study 2017DMA (Direct Marketing Association) Email Tracker Study 2017
DMA (Direct Marketing Association) Email Tracker Study 2017Christopher Hughes
 
DMA Insight: Marketer email tracker 2017
DMA Insight: Marketer email tracker 2017DMA Insight: Marketer email tracker 2017
DMA Insight: Marketer email tracker 2017Filipp Paster
 
2012 Small Employer Health Insurance Survey Ehealthinsurance
2012 Small Employer Health Insurance Survey Ehealthinsurance2012 Small Employer Health Insurance Survey Ehealthinsurance
2012 Small Employer Health Insurance Survey EhealthinsuranceRobert Hutt
 
10 best practice hr in 2009
10 best practice hr in 200910 best practice hr in 2009
10 best practice hr in 2009Confidential
 
10 best practice hr in 2009
10 best practice hr in 200910 best practice hr in 2009
10 best practice hr in 2009Confidential
 
10 Best Practice Hr In 2009
10 Best Practice Hr In 200910 Best Practice Hr In 2009
10 Best Practice Hr In 2009Confidential
 
10 Best Practice Hr In 2009
10 Best Practice Hr In 200910 Best Practice Hr In 2009
10 Best Practice Hr In 2009Confidential
 
10 Best Practice Hr In 2009
10 Best Practice Hr In 200910 Best Practice Hr In 2009
10 Best Practice Hr In 2009Confidential
 
Office move checklist
Office move checklistOffice move checklist
Office move checklistConfidential
 
Business-Consulting.pdf
Business-Consulting.pdfBusiness-Consulting.pdf
Business-Consulting.pdfRonDosh
 
2017 SEC annual reports - Form 10-K
2017 SEC annual reports - Form 10-K2017 SEC annual reports - Form 10-K
2017 SEC annual reports - Form 10-KAzhar Qureshi
 

Similar to Cambridge a level budgets (20)

The-New-Business-Kit-2016-2017 v1
The-New-Business-Kit-2016-2017 v1The-New-Business-Kit-2016-2017 v1
The-New-Business-Kit-2016-2017 v1
 
2011 Spring Training Catalog
2011 Spring Training Catalog2011 Spring Training Catalog
2011 Spring Training Catalog
 
Linkage Training Programs: May-December 2011
Linkage Training Programs: May-December 2011Linkage Training Programs: May-December 2011
Linkage Training Programs: May-December 2011
 
Strategies for a High Performance Revenue Cycle
Strategies for a High Performance Revenue CycleStrategies for a High Performance Revenue Cycle
Strategies for a High Performance Revenue Cycle
 
CPI_Guidebook_July_2008_OSD_FINAL
CPI_Guidebook_July_2008_OSD_FINALCPI_Guidebook_July_2008_OSD_FINAL
CPI_Guidebook_July_2008_OSD_FINAL
 
MANUAL OF WORK
MANUAL OF WORKMANUAL OF WORK
MANUAL OF WORK
 
QuickBooks Statement Writer 2012
QuickBooks Statement Writer 2012QuickBooks Statement Writer 2012
QuickBooks Statement Writer 2012
 
Optimizing the Benefits of EDM and SOA Strategies Through Coordination
Optimizing the Benefits of EDM and SOA Strategies Through CoordinationOptimizing the Benefits of EDM and SOA Strategies Through Coordination
Optimizing the Benefits of EDM and SOA Strategies Through Coordination
 
DMA (Direct Marketing Association) Email Tracker Study 2017
DMA (Direct Marketing Association) Email Tracker Study 2017DMA (Direct Marketing Association) Email Tracker Study 2017
DMA (Direct Marketing Association) Email Tracker Study 2017
 
DMA Insight: Marketer email tracker 2017
DMA Insight: Marketer email tracker 2017DMA Insight: Marketer email tracker 2017
DMA Insight: Marketer email tracker 2017
 
2012 Small Employer Health Insurance Survey Ehealthinsurance
2012 Small Employer Health Insurance Survey Ehealthinsurance2012 Small Employer Health Insurance Survey Ehealthinsurance
2012 Small Employer Health Insurance Survey Ehealthinsurance
 
10 best practice hr in 2009
10 best practice hr in 200910 best practice hr in 2009
10 best practice hr in 2009
 
10 best practice hr in 2009
10 best practice hr in 200910 best practice hr in 2009
10 best practice hr in 2009
 
10 Best Practice Hr In 2009
10 Best Practice Hr In 200910 Best Practice Hr In 2009
10 Best Practice Hr In 2009
 
10 Best Practice Hr In 2009
10 Best Practice Hr In 200910 Best Practice Hr In 2009
10 Best Practice Hr In 2009
 
10 Best Practice Hr In 2009
10 Best Practice Hr In 200910 Best Practice Hr In 2009
10 Best Practice Hr In 2009
 
Office move checklist
Office move checklistOffice move checklist
Office move checklist
 
Telecommunications Products Business Plan
Telecommunications Products Business PlanTelecommunications Products Business Plan
Telecommunications Products Business Plan
 
Business-Consulting.pdf
Business-Consulting.pdfBusiness-Consulting.pdf
Business-Consulting.pdf
 
2017 SEC annual reports - Form 10-K
2017 SEC annual reports - Form 10-K2017 SEC annual reports - Form 10-K
2017 SEC annual reports - Form 10-K
 

More from Sanjaya Jayasundara

Pearson edexcel ial accounting may 2020 unit 02 corporate and management acco...
Pearson edexcel ial accounting may 2020 unit 02 corporate and management acco...Pearson edexcel ial accounting may 2020 unit 02 corporate and management acco...
Pearson edexcel ial accounting may 2020 unit 02 corporate and management acco...Sanjaya Jayasundara
 
Pearson edexcel ial accounting may 2020 unit 01 the accounting system and cos...
Pearson edexcel ial accounting may 2020 unit 01 the accounting system and cos...Pearson edexcel ial accounting may 2020 unit 01 the accounting system and cos...
Pearson edexcel ial accounting may 2020 unit 01 the accounting system and cos...Sanjaya Jayasundara
 
Pearson edexcel ial accounting january 2021 unit 01 the accounting system and...
Pearson edexcel ial accounting january 2021 unit 01 the accounting system and...Pearson edexcel ial accounting january 2021 unit 01 the accounting system and...
Pearson edexcel ial accounting january 2021 unit 01 the accounting system and...Sanjaya Jayasundara
 
Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...
Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...
Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...Sanjaya Jayasundara
 
Cambridge a level - A2 Management Accounting ABC
Cambridge a level - A2 Management Accounting ABCCambridge a level - A2 Management Accounting ABC
Cambridge a level - A2 Management Accounting ABCSanjaya Jayasundara
 
Edexcel IAL introduction - Unit 01 & 2
Edexcel IAL introduction - Unit 01 & 2Edexcel IAL introduction - Unit 01 & 2
Edexcel IAL introduction - Unit 01 & 2Sanjaya Jayasundara
 
Year 10 - Chapter 01 Background of business
Year 10 - Chapter 01 Background of businessYear 10 - Chapter 01 Background of business
Year 10 - Chapter 01 Background of businessSanjaya Jayasundara
 
Prime entry books or books of original entry
Prime entry books or books of original entryPrime entry books or books of original entry
Prime entry books or books of original entrySanjaya Jayasundara
 

More from Sanjaya Jayasundara (16)

7707_s21_ms_12
7707_s21_ms_127707_s21_ms_12
7707_s21_ms_12
 
7707_s21_qp_12
7707_s21_qp_127707_s21_qp_12
7707_s21_qp_12
 
7707_w21_ms_12
7707_w21_ms_127707_w21_ms_12
7707_w21_ms_12
 
4 ac1 02_que_20210505
4 ac1 02_que_202105054 ac1 02_que_20210505
4 ac1 02_que_20210505
 
4 ac1 01_que_20210428
4 ac1 01_que_202104284 ac1 01_que_20210428
4 ac1 01_que_20210428
 
Pearson edexcel ial accounting may 2020 unit 02 corporate and management acco...
Pearson edexcel ial accounting may 2020 unit 02 corporate and management acco...Pearson edexcel ial accounting may 2020 unit 02 corporate and management acco...
Pearson edexcel ial accounting may 2020 unit 02 corporate and management acco...
 
Pearson edexcel ial accounting may 2020 unit 01 the accounting system and cos...
Pearson edexcel ial accounting may 2020 unit 01 the accounting system and cos...Pearson edexcel ial accounting may 2020 unit 01 the accounting system and cos...
Pearson edexcel ial accounting may 2020 unit 01 the accounting system and cos...
 
Pearson edexcel ial accounting january 2021 unit 01 the accounting system and...
Pearson edexcel ial accounting january 2021 unit 01 the accounting system and...Pearson edexcel ial accounting january 2021 unit 01 the accounting system and...
Pearson edexcel ial accounting january 2021 unit 01 the accounting system and...
 
Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...
Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...
Pearson edexcel ial accounting january 2021 unit 02 corporate and management ...
 
4 ac1 02_que_20201113
4 ac1 02_que_202011134 ac1 02_que_20201113
4 ac1 02_que_20201113
 
4 ac1 01_que_20201107
4 ac1 01_que_202011074 ac1 01_que_20201107
4 ac1 01_que_20201107
 
Cambridge a level - A2 Management Accounting ABC
Cambridge a level - A2 Management Accounting ABCCambridge a level - A2 Management Accounting ABC
Cambridge a level - A2 Management Accounting ABC
 
Edexcel IAL introduction - Unit 01 & 2
Edexcel IAL introduction - Unit 01 & 2Edexcel IAL introduction - Unit 01 & 2
Edexcel IAL introduction - Unit 01 & 2
 
Year 10 - Chapter 01 Background of business
Year 10 - Chapter 01 Background of businessYear 10 - Chapter 01 Background of business
Year 10 - Chapter 01 Background of business
 
Cambridge as company accounts
Cambridge as company accountsCambridge as company accounts
Cambridge as company accounts
 
Prime entry books or books of original entry
Prime entry books or books of original entryPrime entry books or books of original entry
Prime entry books or books of original entry
 

Recently uploaded

The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13Steve Thomason
 
CARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxCARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxGaneshChakor2
 
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfEnzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfSumit Tiwari
 
Solving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxSolving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxOH TEIK BIN
 
Class 11 Legal Studies Ch-1 Concept of State .pdf
Class 11 Legal Studies Ch-1 Concept of State .pdfClass 11 Legal Studies Ch-1 Concept of State .pdf
Class 11 Legal Studies Ch-1 Concept of State .pdfakmcokerachita
 
Accessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impactAccessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impactdawncurless
 
Introduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxIntroduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxpboyjonauth
 
Science 7 - LAND and SEA BREEZE and its Characteristics
Science 7 - LAND and SEA BREEZE and its CharacteristicsScience 7 - LAND and SEA BREEZE and its Characteristics
Science 7 - LAND and SEA BREEZE and its CharacteristicsKarinaGenton
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introductionMaksud Ahmed
 
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityGeoBlogs
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformChameera Dedduwage
 
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdfssuser54595a
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionSafetyChain Software
 
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...Krashi Coaching
 
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Celine George
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxheathfieldcps1
 
How to Configure Email Server in Odoo 17
How to Configure Email Server in Odoo 17How to Configure Email Server in Odoo 17
How to Configure Email Server in Odoo 17Celine George
 

Recently uploaded (20)

The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13
 
CARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptxCARE OF CHILD IN INCUBATOR..........pptx
CARE OF CHILD IN INCUBATOR..........pptx
 
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdfEnzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
 
Solving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxSolving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptx
 
Class 11 Legal Studies Ch-1 Concept of State .pdf
Class 11 Legal Studies Ch-1 Concept of State .pdfClass 11 Legal Studies Ch-1 Concept of State .pdf
Class 11 Legal Studies Ch-1 Concept of State .pdf
 
Accessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impactAccessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impact
 
Introduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxIntroduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptx
 
Science 7 - LAND and SEA BREEZE and its Characteristics
Science 7 - LAND and SEA BREEZE and its CharacteristicsScience 7 - LAND and SEA BREEZE and its Characteristics
Science 7 - LAND and SEA BREEZE and its Characteristics
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introduction
 
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
 
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
 
Staff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSDStaff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSD
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory Inspection
 
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
Kisan Call Centre - To harness potential of ICT in Agriculture by answer farm...
 
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
 
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
 
How to Configure Email Server in Odoo 17
How to Configure Email Server in Odoo 17How to Configure Email Server in Odoo 17
How to Configure Email Server in Odoo 17
 
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
TataKelola dan KamSiber Kecerdasan Buatan v022.pdfTataKelola dan KamSiber Kecerdasan Buatan v022.pdf
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
 

Cambridge a level budgets

  • 1. Budgets 1 Accounting with Sanjaya Budgets Sanjaya Jayasundara B.Sc.(Finance) Sp. University of Sri Jayewardenepura, Investment Advisor, International School Teacher
  • 2. Budgets 2 Accounting with Sanjaya Content Budgeting and budgetary control Introduction. Types of budgets Master budget Advantages and disadvantages of budgets The effect of limiting factors on the preparation of budgets Flexed budgets Make business decisions Extra readings Past paper questions. Model questions. Summary Syllabus according to Cambridge 2.2 Budgeting and budgetary control Candidates should understand the need for and benefits of a budgetary control system to an organisation. Candidates should be able to: • discuss the advantages and disadvantages of a budgetary control system to an organisation • prepare the following budgets: sales, production, purchases, labour, trade receivables, trade payables, cash, Master budget • recognise the effect of limiting factors on the preparation of budgets • prepare a flexed budget statement • identify and explain the causes of differences between actual and flexed budgeted data • make business decisions and recommendations using supporting data • discuss the behavioural aspects of budgeting.
  • 3. Budgets 3 Accounting with Sanjaya Introduction A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Advantages of a budgetary control system to an organisation Allows targets to be set Helps to plan / control the use of resources Helps with decision-making Enables regular variance analysis Identifies limiting factors Informs all departments of a common goal Improves communication between managers and departments Improves co-ordination between departments Provides clear areas of responsibility Helps to motivate employees Disadvantages of a budgetary control system to an organisation …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… Types of budgets …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… What is budgetary control? …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………
  • 4. Budgets 4 Accounting with Sanjaya Past Paper Questions May/ June 2019 – Variant 32 Did you know? A flexed budget. is a budget prepared to show the revenues, costs and profits that should have been expected from the actual level of production and sales
  • 5. Budgets 5 Accounting with Sanjaya October/ November 2018 – Variant 32
  • 6. Budgets 6 Accounting with Sanjaya October/ November 2018 – Variant 33
  • 7. Budgets 7 Accounting with Sanjaya May/ June 2018 – Variant 31/33 Expert tip: A cash budget might show a negative cash flow at the end of a time period. This is possible as cash budgets also include bank transactions.
  • 8. Budgets 8 Accounting with Sanjaya Extra Readings… Limitations of Budgetary Control:  Prediction of Uncertain Future: Budgeting is a process of forecasting and estimation. ...  Changes of Conditions: Budgets are prepared on the basis of certain prevailing conditions. Complacence, Difficulty in Coordination, Conflict among Different Departments: www.accountingnotes.net › cost-accounting › budgetary-control-meaning-o... Master Budgets …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
  • 9. Budgets 9 Accounting with Sanjaya February/March 2018 – Variant 32 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
  • 10. Budgets 10 Accounting with Sanjaya October/ November 2017 – Variant 32 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
  • 11. Budgets 11 Accounting with Sanjaya October/ November 2017 – Variant 33 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
  • 12. Budgets 12 Accounting with Sanjaya May / June 2017 – Variant 31/33 May / June 2017 – Variant 32 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
  • 13. Budgets 13 Accounting with Sanjaya October/ November 2016 – Variant 32 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
  • 14. Budgets 14 Accounting with Sanjaya October/ November 2016 – Variant 33 …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………………………………
  • 16. Budgets 16 Accounting with Sanjaya Now test yourself: 1. Explain the term ‘budget’. 2. Identify five functions of budgeting. 3. Explain the term ‘budgetary control’. 4. Explain the term ‘master budget’. 5. Complete the following sentence: A master budget draws together individual budgets and is summarized by the preparation of an …………………………………. Statement and a statement showing the …………………………………………. Of the business. 6. Complete the following formula for a trade payable budget: Opening balance of trade payable + ? + ? = Closing balance of trade payables 7. Explain why the preparation of a cash budget is vital to the decision making of any business. 8. Is depreciation entered in a cash budget? Explain your answer. 9. List three items that might appear in a budgeted income statement but would not appear in a cash budget. 10. Explain the term ‘principle budget factor’. 11. Identify two principal budget factors that could prevent the desired outcomes for a business. 12. Explain what is meant by a flexed budget. All the best children…! I wish you an enjoyable learning session...! Sanjaya Jayasundara Study well and be a good citizen to motherland Sri Lanka…!