For developing the 2012 ice cream budget we already discuss the assumption for budget 2012.For ice cream factory 2012 budget as follows. Now we look back to the budget from 2009-2011.
In year 2009-11 the selling of ice-cream is same according to sales variable cost also remains same. Any organization some macro and micro factors are affected in selling their product. Now, in this section i discuss about the some factor which affect the sales and variable cost. For ice-cream factory the weather is main key factor in summer no sunny weather it’s directly affect to the selling due to cold weather people can’t buy ice-cream. In year 2009-10 weather is not so good its means selling remains same. ...view middle of the document...
Other expanses goes down and some expanses are remains flat in budget 2008 we think that the production is increased and that’s why the maintenance cost more. In Excel sheet we see the top 6 significance 2008 budget and 2008 actual.
2. Identify and use a range of financial controls
2.1 Budget for an area of management responsibility
A budget is a plan for the near future detailing saving and spending expenditures. It consists of a list of all planned expenses and revenues. In other way we also say that the budget means ‘how the money comes and its goes’. Budget carried out by individual or by company to estimate whether or not they can continue to operate with its projected income, profit, cash flow, output and expenses. A budget can be constructing for each financial year and contain information on the estimated value of sales and value of costs. From this we can see how the coming accounting period is nearly to end. The actual performance of the business can be measured against this proposed plan. Different budgets can be created depending on what particular aspect of the business requires focus. See three popular kinds of budgeting plans below.
UK Midland region a Davis service group produce budgets statements for textiles. This budget based on historical data and assumption of this year. The two forecast outcomes use two different sets of assumptions resulting in lower or higher levels of sales. In the example, sales for the first three months of the year were budgeted at £19.8m. Actual sales were £20.3m 2.5% above budget. If this level of increase were to continue, sales would reach £83m.The variance between actual and budget it may be favourable or adverse. Davis managers monitor the variances that are unexpected, either in their size or timing, and react accordingly. Managers generally focus their energy on these 'exceptions'. For example, the weather can cause an unexpected variance for Davis Service Group's business. June and July 2008 were warm, sunny months in the UK; the hotel and restaurant industry was busy and therefore the laundries and their staff were busy. This was followed by a wet August. The number of people going on holiday fell and resulted in reduced linen services.
Now I prepare a budget for the year 2012 using the history for ice cream factory. I think and assume summer and winter selling. Summer contains the month from April-September and winter contains the month from Oct-Mar. According to this i prepare my budget for ice cream factory. I consider following terms for my budget.
From year 2009 – 2011 my sales in winter is same due to weather and starting new staff. Two types of cost variable cost and fixed cost variable cost contains the milk, and ice cream raw material this cost is vary depending on sales.Fixed cost contains the rent, maintenance, staff wages, electricity, van cost and water bill which is totally fixed all over...