• List the two common reporting cycle periods for financial reporting.
• 1.For the listed accounting software, describe two key features and two functions of the accounting software.

1. xero
2. myob

1.Explain how each of the factors below impact on budget development.

Factors

Impact

a.growth or decline in economic conditions

b.human resource requirements

c.new legislation or regulation

d.organisational and management restructures

e.organisational objectives

f.scope of the project

g.shift in market trends

h.significant price movement for certain commodities or items

i.supplier availability and cost

1.Explain how each of the data below can assist in preparing a budget

Data

How the data is useful for preparing a budget.

a.competitor research

b.customer or supplier research

c.declared commitments in areas of operation

d.financial information from suppliers

e.financial proposals from key stakeholders

f.income and expenditure for previous time periods

g.departmental, event or project budgets

h.grant funding guidelines or limitations

i.performance information from previous periods

1.Explain the importance of each of the following budget preparation practices

Practice

Importance

a.management policies and procedures

b.organisational budget preparation guidelines

• Describe two techniques for making budget estimates.
• Explain the concept of budget deviation management.
• Give three common reasons for deviations from budgets.