Posted: September 13th, 2017

Budgeting Assignment

Paper, Order, or Assignment Requirements

• Select a type of business venture producing a product that includes using two types each of materials and labour (Research this for the written Business Plan element)

• All four/five group members must be assigned a specified portion of work on budget preparation in which they are involved and are accountable for

• Prepare a detailed Contribution Statement – make realistic assumptions about Pricing & Variable Costs and itemise them all (Research for Plan)

• Specify Capital (Fixed) Assets needed, their cost, source (from where they will be purchased), their useful life, depreciation etc (Research for Plan)

• Consider your projected Sales volume & growth rate (seasonality?) for the whole year (Table of Assumptions)

• Plan Payment terms for customer receipts & from your suppliers (Assumptions)

• Decide on the Opening & Closing Inventory you will need (Assumptions) to maintain your sales volume (Assumptions)

• Calculate & display details of the Break-Even Point & Margin of Safety, etc (Spreadsheet)

• Prepare a Production Budget and a Purchases Budget, allowing for your Inventory requirements (Spreadsheets)

• Consider ALL of the likely Overhead costs & itemise them (Spreadsheet)

• Prepare a monthly/total Cash Budget incorporating all of the above relevant items (Spreadsheet)

• Prepare an Income Statement for the year (Spreadsheet)

• Prepare a Balance Sheet as at the year end, reconciling the closing cash balance, the opening & closing inventory, closing debtors/creditors and your projected profit or loss (Spreadsheet)