FIN704 GDB 1 Solution and discussion

zaasmi

Re: FIN704 GDB 1 Solution and discussion

Total Marks 5
Starting Date Tuesday, June 02, 2020
Closing Date Friday, June 05, 2020
Status Open
Question Title Types of Budget
Question Description

GDB (FIN704)

Managerial Accounting

Topic for Discussion: “Types of Budget”

Learning Objectives:

To assess the knowledge related to the budget and its different types
To understand the importance of budgeting process for effective planning and control
To know the significance of budgeting as per nature of the business and its industry
To assess the importance of budget in decision making

Scenario:

Xee & Co. is one of the manufacturing concerns in local electronics market. Recently, it has launched screens for smartphones, car navigators and other consumer electronics. The company belongs to an industry which is notable for its fierce competition, short product life cycle, price pressure from online stores and the need for continuous innovation. Currently, the company is using the incremental annual budgeting technique for planning and controlling which sets the targets for both sales and production departments. The manager accounts of the company recently attended the conference “Budgeting Requirements of High-Tech Industry” and realized that the incremental annual budgeting technique used by Xee & Co. is not suitable for such a dynamic industry in which company works. He urged that the budgeting technique needs to be adjusted quarterly or even monthly for better planning and controlling to form realistic targets with prediction of market changes.

Required:

What type of budgeting technique would you recommend to Xee & Co which will support the argument of manager accounts concluded by him after attending the conference?

Important Instructions:

Carefully review your GDB before submission as it cannot be replaced once it is submitted.
Your discussion must be based on logical aspects of the topic requirements with proper justification.
There is a limit of 200 Words for discussion.
Use the font style “Times New Roman” and font size “12”.
Your answer should be relevant to the topic i.e. clear and concise.
Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0) even if you provide references.
You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed.
Obnoxious or ignoble answer should be strictly avoided.
You cannot participate in the discussion after the due date via email.
Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VULMS.
As you know that load shedding problem is also prevailing in our country. Keeping in view the fact, you are advised to submit your GDB well before time without waiting for the due date. For your convenience; you have been communicated so that you can manage your activities, therefore no excuse will be entertained after due date of GDB.