Manage budgets and financial plans Essay

600 Words3 Pages
Assessment Task 1

Manage budgets and financial plans

Big Red Bicycle Pty Ltd

Task A

Based on the master budget, there have something wrong and unclear. All the numbers are the same, evenly quarter two have more sale than other quarter, at least less 30% than quarter two. We can easy to recognize with a few changes and we can achieve a goal $1.000.000

Option 1: Sales on Q1, Q3 and Q4 less 30% than Q2. That’s mean the volume of Q2 going to increase 30% than other and the commission will increase 30% as well

Option 2: Decrease Cost of Goods Sold and Expense by 20% due to the current economic climate.

By that way we can get more revenue by produce more volume for sale and also
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Sales centre A, they had achieved great success over the last year and consistently outsells other sales centres. In fact, due to the large number of accounts managed by our sales team and larger staff, Sales centre A is expected to sell as much volume as the other two sales centres put together. That means, the expense budget for Sales centre A must be more than other, at least twice time then the other centre. Because, they need a lot of money to pay for their cost, such as Wages, telephone, office supplies, and commission. That seems not fair for Sale centre A.

Contingency plan template

Contingency Plan
Company name: Big Red Bicycle Pty Ltd
Person developing the plan: Nguyen, Hoang &Sachit Mahat
Name: Nguyen, Hoang &Sachit Mahat Position Manager of Sale Centre A

Risk identified:
Strategies/activities to minimise the risk
By when
By whom

Evaluate total expense and reduce any unnecessary expense: Wages, advertising, staff amenities…
All store
Deal with supplier to reduce cost of gods sold or change to new supplier

CEO Michelle Yeo

Find out and fix the problem from accounting department, change new senior accountant
CEO Michelle Yeo

Prepare to negotiate necessary changes to the budget, cash flow and profit projections
New senior accountant

Identify areas of the budget that are not achievable, inaccurate or unclear
New senior accountant

Set a new goal
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