Budgeting
Baby cakes a specialty bakery, is that company will be considered for all parts of the budget planning and control report. For this assignment you will develop a 3 page pager addressing the following:
Briefly discuss the ways a realistic budget will benefit the owner of baby cakes versus no budget at all. Be sure to use baby cakes as the company and any specific product detailed in your explanation.
Prepare a sales budget for the LA baby cakes store for the 4th quarter of 2016.present the number of units, sales price and total sales for each month. Include October, November December and total of that quarter, use one of valentine’s day sales as the basis for usual day in the new quarter .use 30 days for each month. Calculate the total for each month of October, November and December.
Create three new products, one for each of the three holiday season in the 4th quarter. Estimate the sales units’ sales price and total sales for each month describe the assumptions used to make this estimates. Include an overview of the budget in the report, presenting the actual budget as an appendix with all data and calculations. Add these amounts to your sales budget.
The owner of the baby cake is interested in preparing flexible budget rather than the static budget she currently uses. She doesn’t understand why when sales increase her static budget shows unfavorable variance. Explain how flexible budget will overcome this problem. Use the details of your newly prepared budget for 4th quarter of 2016 to address her concern.
Imagine that baby cakes is facing a financial challenge that is causing the amount of money that it spends to become significantly more than its budgeted amount. Include a discussion of your own unique cause of the overspending. Explain the corrective actions needed to address these challenge.
Integrate relevant information from at least three quality academic resources in this assignment. Note please do not use your textbook as an academic.
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A budget is an estimate of incomes and expenditures in a particular period of time. Budgeting refers to the process of planning expenses (Hughes, Minogue, &Senaratne, 2008). In situations where incomes are less than projected expenditures, a budget is used to prioritize the expenses. Businesses that use budgets draw significant benefits than those that do not use budgets. In the case of baby cakes, the company will enjoy the following advantages. First, the business will enhance its production efficiency. …………………….
APA
990 words
