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.
·
Budgetary Planning
featuring Babycakes *FULL VIDEO*. (2016). YouTube.
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.
Your assignment must follow these formatting
requirements.
·
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-?nancial 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
theRubric
for the Assignment: Budget Planning and Control.
