LO 3&4

Task 3 - Learning outcome 3 (possible evidence is a written word document)

Topic 1: the definition of budget and the different types of budgets that could be used by different departments within the company and their usefulness for different departments.

Definition of budget , Uses of budget, Limitations of budget

Types of budgets: definition, identify the department, how to use it and how it will be usefulness

Topic 2: the definition of budgetary control and the advantages and disadvantages of different types of planning tools that the company could use for budgetary control. (You need to mention at least two tools).

Definition of budgetary control

Budgetary control planning tools: Master , fixed and flexible : definition and Adv and Dis-Adv (Min 2)

Topic 3: based on the given production budget by the company, analyze the use of different planning tools and their application for preparing and forecasting such budget for next month.

	Original budget 1/12	Actual figures 30/12
Output	1,000 units	900 units
Sales revenue	100,000	90,000
Raw material	40000 (4000 meters)	37000 (3700meters)
Labour	20000 (5000 hours)	17575 (4750 hours)
Fixed overhead	20,000	20,000
Operating profit	20,000	15,425

Preparing flexible budget, calculate the variances between (1. Original budget and actual figures) (2. Actual and flexible) Variances: Value , F/U, Explanation is an extra.

3 Learning Outcome Task 3-

Task 4 - Learning outcome 4 (possible evidence is a written word document)

Topic 1: the available tools that the company can use to identify financial problems and measure the organization performance, with examples. And compare how the company can use different management accounting systems and techniques to respond to different financial problems.

Topic 2: Analyze how, in responding to financial problems, management accounting can lead the company to sustainable success. And evaluate how planning tools will be affected by different responses to financial problems leading the company to sustainable success.