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.
Introduction:
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.
Task:
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.
WG