SUBDOMAIN 326.1 – MANAGING INTERNAL COST & CONTROLLING FINANCES
Competency 326.1.5: Budgets – The graduate utilizes budgets and a variety of pro-forma statements for planning and control purposes, including analyzing cash flows to assure adequacy of funds for capitalizing on business opportunities.
In this task, you will use the attached Competition Bikes Inc. Storyline” to review various budgets and budget planning for the company and provide your analysis and recommendations.
Note: Be sure to submit a copy of your Excel workbook when submitting your JET2 Task 2 work. The evaluator will need a copy of your data to ensure correct evaluation.
A. Prepare a summary report in which you do the following:
1. Discuss specific budgetary items that raise concern in the budget planning (Spreadsheet Tab: Task 2_Budgets_and_Proformas).
2. Evaluate the flexible budget and its variances (Spreadsheet Tab: Task_2_Budget_Variances).
a. Recommend corrective actions for areas of concern based on a variance analysis.
b. Discuss how the concept of management by exception could be applied to the variances.
B. When you use sources, include all in-text citations and references in APA format.