Budgets and financial management in higher - Myassignmenthelp.Com

Question: Discuss about the Budgets and financial management in higher. Answer: Preparing budget for Ned Kellys Newsagents for the period 1st January, 2014 until 30th June, 2014: Particulars Jan Feb Mar Apr May Jun Total Sales 24,675 26,250 28,875 27,300 29,610 30,765 167,475 Cost of sales Fairfax News 3,344 3,553 3,658 3,344 3,762 3,971 21,632 Newscorp 3,502 3,708 3,811 3,605 3,708 3,811 22,145 Stationary w/Sale 2,400 2,200 2,000 2,100 2,200 2,450 13,350 Cadbury 764 784 833 813 853 902 4,949 Expenses Depreciation 400 400 400 400 400 400 2,400 Rent 1,935 1,935 1,935 1,935 1,935 1,935 11,610 Light Power 715 715 715 715 715 715 4,290 Petrol 120 120 120 120 120 120 720 Phone 340 340 340 340 340 340 2,040 Salaries 7,175 7,175 7,175 7,175 7,175 7,175 43,050 Depicting what could be conducted to reduce rent cost: The decline in rent can only be conducted by the company, where extension of the lease agreement could be conducted. This would eventually allow the company to negotiate and reduce rent, while declining the expenses (Bailey, 2018). Reflecting the budget with reduced rent: Particulars Jan Feb Mar Apr May Jun Total Sales 24,675 26,250 28,875 27,300 29,610 30,765 167,475 Cost of sales Fairfax News 3,344 3,553 3,658 3,344 3,762 3,971 21,632 Newscorp 3,502 3,708 3,811 3,605 3,708 3,811 22,145 Stationary w/Sale 2,400 2,200 2,000 2,100 2,200 2,450 13,350 Cadbury 764 784 833 813 853 902 4,949 Expenses Depreciation 400 400 400 400 400 400 2,400 Rent 1,890 1,890 1,890 1,890 1,890 1,890 11,340 Light Power 715 715 715 715 715 715 4,290 Petrol 120 120 120 120 120 120 720 Phone 340 340 340 340 340 340 2,040 Salaries 7,175 7,175 7,175 7,175 7,175 7,175 43,050 Responding to the question regarding small amount of petrol budget: The small portion of petrol budget is conducted due to the low usage and need of fuel within the production function. In addition, maximum of the production needs is fulfilled with the lightening and power, which is relatively accommodated in the budget. This is the main reason behind the increment in value of electricity and constant value of petrol in budget (Barr McClellan, 2018). Depicting the reason for the deviance: The main reason behind the deviance for cost is the rising raw material price and other variable cost needed to complete the production function. Depicting the reason behind measures to address the deviance: Contacting other suppliers might help in getting competitive prices from the market, which in turn could help in reducing the overall cost of Cadbury. Reference and Bibliography: Bailey, D. (2018).The NHS Budget Holder's Survival Guide. CRC Press. Barr, M. J., McClellan, G. S. (2018).Budgets and financial management in higher education. John Wiley Sons. Finkler, S. A., Smith, D. L., Calabrese, T. D., Purtell, R. M. (2016).Financial management for public, health, and not-for-profit organizations. CQ Press. Klychova, G. S., Faskhutdinova, ?. S., Sadrieva, E. R. (2014). Budget efficiency for cost control purposes in management accounting system.Mediterranean journal of social sciences,5(24), 79. Lopez-Valeiras, E., Gomez-Conde, J., Naranjo-Gil, D. (2015). Sustainable innovation, management accounting and control systems, and international performance.Sustainability,7(3), 3479-3492. Stevenson, W. J., Sum, C. C. (2015).Operations management. New York: McGraw-Hill Education.