BAO 1101 Topic 3 Question 3 PDF

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Download BAO 1101 Topic 3 Question 3 PDF

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Question 3 1. Do you consider Golden Ltd to be in a strong financial position? Yes, surplus of $161,000 by end of February 2. Why is budgeting an important part of the decision making process. Budgeting requires planning for the future - providing a financial plan Enables management to plan, coordinate and communicate between participants to achieve goals. 3. Provide 3 advantages of using budgets in the decision making process any 3 of the following: requires all levels of management to plan ahead provides definite financial objectives for evaluating performance creates an early warning system for potential problems facilitates coordination of activities e.g. production and sales results in greater management awareness contributes to positive behaviour patterns by motivating employees to reach targets 4. Two benefits of a performance report Allows the business to prepare for future if there is a shortage they can arrange borrowings if there is a surplus helps to invest to get the greatest return enables greater control 5. Way to improve overall cash position increasing receipts / faster cash collection decreasing / delaying payments or any other reasonable answers 6. Explain the purpose of budgeting. Answer should include reference to :Planning for the future. 7. Provide 3 advantages of using budgets in the decision making process. coordination communication control...