# Management Accounting: Costs and Budgeting

Topics: Variable cost, Fixed cost, Total cost Pages: 9 (1399 words) Published: May 7, 2013
BTEC Centre
Guangdong AIB Polytechnic College

|Unit |Unit 9: Management Accounting: Costs and Budgeting | |Class |2011 HND Finance | |Assignment |A2: Preparing budgets | |Date issued |Nov 14,2012 | |Date deadline |Dec 12, 2012 | |Tutor |Huang YingQiu | |IV |KONG TAO |

Declaration:
I am aware that cheating and plagiarism will not be tolerated in any assignment and that this work complies with the requirements. Student’s Signature： (In Pinyin)
(In Chinese)
Class: Student No.: Learning Outcomes
|3. Prepare forecasts and budgets for |3.1 explain the purpose and nature of the budgeting process | |business |3.2 select appropriate budgeting methods for the organisation and its needs | | |3.3 prepare budgets according to the chosen budgeting method | | |3.4 prepare a cash budget. | |4. Monitor performance against budgets |4.1 calculate variances, identify possible causes and recommend corrective action | |within a business. |4.2 prepare an operating statement reconciling budgeted and actual results | | |4.3 report findings to management in accordance with identified responsibility centres. |

Assessment
| |Criteria |Evidence | |Pass |3.1 explain the purpose and nature of the budgeting |Define the term budget, explain the purpose and benefits of | | |process |budgeting and the process in budgeting. | | |3.2 select appropriate budgeting methods for the |Explain the differences between static and flexible budgeting. | | |organisation and its needs | | | |3.3 prepare budgets according to the chosen budgeting |Correctly prepare the budget, showing variances and compare | | |method |differences between two different methods. | | |3.4 prepare a cash budget. |Prepare the cash budget in the right format, work out the correct | | | |numbers. | | |4.1 calculate variances, identify possible causes and |Correctly calculate all the variances provided in the question and| | |recommend corrective action |decide whether is favorable or adverse, explaining all the | | | |possible...

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