1. Identify production and support departments in your company and various cost related activities in your...

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1. Identify production and support departments in your company and various cost related activities in your company. (5 m) 2. Pick up the expenses of your company from the most recent year's income statement and develop a support department cost allocation model, clearly giving the basis for allocation and apportionment for each item and then compute the overhead absorption rate. In case any assumptions are made, please state them clearly. (5 m 3. Prepare a budget for your company, using previous year's financial statement as guideline and making adjustments for the following a. Additional new product lines/ new projects/planned expansion/ changes in sales for the year b. Inflationary trends Clearly explain the rationale used by you to prepare the budget. (6 m) 4. Do a variance analysis (stating clearly adverse or favorable variance) from the budget prepared by you in (3) above and actual revenues & expenses from the latest financial year's information available. Specify the possible reasons for the variance. (6 m) For example, if you are doing a variance analysis for the year 2019-20 (in question 4), you will have to consider the data for the year 2018-19 for preparing the budget (in question no.3) 5. What are some of the factors/considerations that make budgeting more complex in your organization? (3 m) 1. Identify production and support departments in your company and various cost related activities in your company. (5 m) 2. Pick up the expenses of your company from the most recent year's income statement and develop a support department cost allocation model, clearly giving the basis for allocation and apportionment for each item and then compute the overhead absorption rate. In case any assumptions are made, please state them clearly. (5 m 3. Prepare a budget for your company, using previous year's financial statement as guideline and making adjustments for the following a. Additional new product lines/ new projects/planned expansion/ changes in sales for the year b. Inflationary trends Clearly explain the rationale used by you to prepare the budget. (6 m) 4. Do a variance analysis (stating clearly adverse or favorable variance) from the budget prepared by you in (3) above and actual revenues & expenses from the latest financial year's information available. Specify the possible reasons for the variance. (6 m) For example, if you are doing a variance analysis for the year 2019-20 (in question 4), you will have to consider the data for the year 2018-19 for preparing the budget (in question no.3) 5. What are some of the factors/considerations that make budgeting more complex in your organization? (3 m)

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1 Identification of Production and Support Departments Production Department Responsible for manufacturing the companys products or delivering its services Activities include raw material procurement ... View the full answer