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.

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).

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

Answer rating: 100% (QA)

1 Budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and reevaluated on a periodic basis Budgets can be made for a person a group of people ... View the full answer