Task 10

Instructions: The following task is to be submitted to your teacher in one of the two ways described below.

To return work by email

To return work by mail

To save and finish later

The Art of Budgeting

The importance of budgeting cannot be over emphasised. This task takes your understanding and application beyond the basics.

The business is called  The Pampered Pooch

click here to access the Budget Statement

You will notice that the Budget Statement outlines:

• the revenue or income for the business over a 12 month period
• the expenditure / costs of the business over a 12 month period
• the budget (the anticipated) revenue and expenditure
• the actual revenue and expenditure

Answer the following questions based on the budget statement.

Question 1

Calculate the difference of the items between the amount budgeted and the amount spent.

 

 

Question 2

What problems does the business face? (Hint: compare the Total Income with Total Expenditure)

 

 

Question 3

Which expenditure items were under budget?

 

 

Question 4

Which item was most over budget? Why do you think this may have occurred? At least 2 reasons.

 

 

Question 5

How might these problems be avoided in the future?

 

 

Question 6

Monitoring and adjusting the budget is important. How will this help you prepare the next budget for The Pampered Pooch?

 

return to Topic 5