this is a question Report for assessment,

Your report document is still not clear. This must be a professional document. Please provide full paragraphs of information under each heading.

Contents

BACKGROUND..2

Objectives.2

Budgets to Prepare.2

Research and Information.2

Internal and External Factors.2

Communication.2

BACKGROUND

Briefly outline the reason for the report. Use the information from the case study

Objectives

Briefly outline the companies objectives for the business

The objective of our company is to be a successful event management company in 3

years. Business is showing positive trends and earning profit every quarter. Therefore it is

decided to prepare a budget so the future growth can be improved in a systematic way and we can monitor performance of our company and can adjust our plans accordingly

In order to achieve this, the company needs to prepare a budget so that future growth can be improved in a systematic way and performance can be monitored.

Budgets to Prepare

What type of budget would you prepare?

our business isn't very that much big so a simple P&L budget will work for us where we

will forecast expected sales and expenditures of our business and can see expected profit we

could earn from event management.

The type of budget that will be prepared is a P&L budget, which will forecast expected sales and expenditures of the company and expected profit.

Research and Information What information and research would you use to make this budget?

To prepare this budget we will be requiring our actual figures of previous quarters (historical

data) and market information to forecast future sales and expenditures

Information and research that will be used to make the budget include historical data and market information.

Internal and External Factors Internal

What issues may arise from inside the company that may affect the budget?

Work Management - proper work management is important to stay on

Resource usage - if the resources will be used carelessly our expenses

can go high and disturb the budget

Internal factors that may affect the budget include work management and resource usage.

External

External factors such as market situation, competitors, economic situations,

politics, natural disasters, including epidemics. Are all factors that affect the

organization both directly and indirectly

External factors such as the market situation, competitors, economic situations, politics, and natural disasters can all affect the organization directly or indirectly.

Pandemic Covid 19 can affect the budget due the unpredictable of rule changes from government Communication

Email, Schedule group video calls (e.g. weekly) to give a summary of the project and Monthly meeting in office by given presentation

Participation of employees is very important in budget planning process as they can provide

you first hand information therefore we will seek opinion and suggestions from our staff along

with the potential expense and sales figures. As our company is a small business and only using one budget so we can monitor it easily.

And We will have regular meeting and discuss if the draft budgets is realistic or needs to

be changed.

Communication is important in the budget planning process in order to seek opinions and suggestions from employees. Regular meetings should be held to discuss the budget and see if it is realistic.

1. Calculate the next four quarterly budgets based on the prediction that the sales would increase by 6% per quarter and the relevant expenses would increase by 4% per quarter.

Develop a second set of quarterly budgets where the profit is 8% higher than the projected figures above. The relevant sales and expense figures should be revised accordingly to achieve this goal.

		Quarter1	Quarter2	Quarter3	Quarter4
Sale	48000	50880	53932.8	57168.77	60598.8 9
Expenses	46380	47297.2	48251.09	49243.13	50274.8 6
Staffing	18600	18600	18600	18600	18600
Telephone	680	707.2	735.488	764.9075	795.503 8
Rent	3600	3600	3600	3600	3600
Advertising	1250	1250	1250	1250	1250
Equipment	8400	8736	9085.44	9448.858	9826.81 2
Event catering	13850	14404	14980.16	15579.37	16202.5 4
Profit and loss	1620	3582.8	5681.712	7925.636	10324.0 4

1. Once you have developed the budget, you are required to monitor and review the budget.By the end of the first quarter you can see that your actual sales grew by only 4% and expenses were as follows:

• Staffing = $22,400
• Telephone/Internet = $580
• Rent = $3,600
• Advertising = $1,650
• Equipment hire = $9,800
• Event catering = $14,250

Prepare a variance calculation report showing the actual and budgeted profit and loss figures for the first month, the favourable or unfavourable variance amounts and suggestions for corrective actions everywhere necessary.

(Guide: Medium to Long).

	Budget	Actual	Variance	UF/F	comment
sale	50880	49920	960	U	Actual is lower than budget
Expenses	47297.2	52280	-4982.8	U	Actual is higher than buidget
Staffing	18600	22400	-3800	U	Actual is higher than budge
Telephone	707.2	580	127.2	F	Actual is lower than budget
Rent	3600	3600	0	F	Actual is same as a budget
Advertising	1250	1650	-400	U	Actual is higher than budge
Equipment	8736	9800	-1064	U	Actual is higher than budge
Event catering	14404	14250	154	F	Actual is lower than budget
Profit and loss	3869.424	-2360	6229.424	U	Actual is higher than budge

When we see the table above there have 5 department get unfavorable, first in

sales, we look for what happen this month find the problem that is internal or

external problem and make a survey question give them to customer to ask fill it

up. And second in expenses, we spent money more than what we set the budget

so find out specifically and find out any error about calculation. And Staffing and

equipment, conduct staff meeting and announce staff current situation and

business profit,

Lastly advertising, go to marketing team and discuss about extra charge