Jet 2 Task 2

In: Business and Management

Submitted By loolilly321
Words 1345
Pages 6
A budget is a comprehensive plan given in a quantitative term that directs where resources will be acquired and spent in a given period. It is a financial document which operates on income and expense basis. This document depends on the balancing of the monthly or yearly income and expenses. In this case, plan is used as the controller of what is going to happen while budget assess the performance of the required project. The meaning of setting a budget is to provide direction, improves efficiency, control finances and assign responsibilities to evaluate the business plans. Budgets are used by managers as s benchmark to measure up to the results of the definite operation.

Budgetary areas that raise concern in the budget planning

There were budgetary areas that raised an alarm in the budget planning of the Competition Bikes, Inc. one of the leading area was the forecasting of the transaction budget. The year 9 sale projection set at 3510. There a big is the difference in units of year 8 compared to year 7 with a decrease of 15% levels. Keeping in mind the current economic imbalance, the projected sales reading 3510 do not call for any support. This cannot happen because the professional rider’s sponsorship is at decline and is expected to undergo the same situation for another three years. These steps do not make sense at all and continuation of the support without the clear discussions and understanding on the way forward to increase sponsorship will no doubt lead to decline market (William et al, 1975
The budget does not reflect the quarterly breakdown as proposed earlier on the master plan. The management does not take keen consideration on the purchase of the seasonal activity materials. This is a failure to meet the requirements of a biking competition which is an outdoor sport taking place throughout the year. The company should consider proper…...

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