You should use this file to complete your Assessment.
The first thing you need to do is save a copy of this document, either onto your computer or a USB drive
Then work through your Assessment, remembering to save your work regularly
When you’ve finished, print out a copy to keep for reference
Then, go to www.vision2learn.com and send your completed Assessment to your tutor via your My Study area – make sure it is clearly marked with your name, the course title and the Unit and Assessment number.
Please note that this Assessment document has 7 pages and is made up of 3 Sections.
Section 1: The purpose of budgets
This section will help you to evidence Learning Outcome 1: Understand the purpose of budgets in a business environment.
Place in Assessment
1.1 Explain the purpose of budgets for managing financial resources to meet business requirements
Question 1 Page 1
1. Why are budgets used to manage financial resources? [1.1]
The budgets are essential to organisations and are used to manage and control financial resources in order to achieve organisational objectives.
Some of the most common uses of budgets are:
One of the benefits of a budget is that it helps the organisation to manage its resources effectively. This can help the organisation to operate more efficiently.
Budgets can help businesses also to achieve their objectives.
Objectives can include maximising profits, minimising costs, developing new products, satisfying customers and managing risk.
The budgets can help encouraging co-ordination and communication across an organisation.
The budget can provide a plan to help the organisation achieve its objectives and make key decisions for the future. Budgets can be used to compare planned and actual performance.
The budget enables people in the organisation to control costs, income and cash and to make confident financial decisions.
Now that you