Question $2-$ PART B

Required:

a$)$ Describe three $(3)$ benefits that an organization can expect to realize from budgeting. $(3$ marks$)$

b$)$ Briefly describe the following concepts of budgeting:

i$.$ Zero$-$based budgeting. $(1\mathrm{.}5$ marks$)$

ii$.$ Kaizen budgeting. $(1\mathrm{.}5$ marks$)$

QUESTION $3-$ PART A

Required:

a$)$ If the deluxe tours are discontinued, one administrative position could be eliminated, saving the company RM$50,000.$ Assuming no change in the sales of basic tours, what effect would dropping the deluxe tour have on the company's operating income? $(4$ marks$)$

b$)$ Refer to the original data. If Kenyir Fishing drops the deluxe tours, Badrul estimates that sales of basic tours would increase by $50\%.$ He believes that he could still eliminate the RM$50,000$ administrative position. Equipment currently used for the deluxe tours would be used by the additional basic tours. Should Badrul drop the deluxe tour? Assess the decision. $(4$ marks$)$

c$)$ Determine other factors that Badrul should consider before dropping the deluxe tours.