Question: PART A - The first part requires you to prepare a basic master budget. The general description and the data for the assignment is to be obtained from the associated assignment data file. This file is in MS Excel format and requires you to enter your student number to generate the assignment data. The data generated is unique to each student. The basic format and requirements of the assignment are the same for each student, however the different data sets will result in a substantially different solution for each student.

The data file for this assignment is available on the ACT202 Learnline site in the same section from where you obtained this document.

If you are unable to access this file in MS Excel format, then please contact the Lecturer who will provide you with a copy of the data in PDF format. All that is required for this part is the Budget Schedules. They can be produced in any format that you feel is convienent however the final submission must be in readable3 PDF format. (Word count for this part is not relevant)
(50% of the assignment assessment marks)

PART B - The second part requires you to write a brief report addressing the Sales Manager's concerns, using some of the concepts covered in Topic One of this unit specifically and concepts covered in Topics 2 to 5 more generally, AND the information provided on the Cost Structures identified in the budget prepared for Part A and in the data provided in the data file for this assignment, and any additional calculations using that existing data that you feel are relevant. Your report should also include a discussion of the impact of the Production Manager's intended investment in new manufacturing capacity. Support your report with relevant calculations.

The answer for this part will not be significantly affected by the accuracy or otherwise of your answer to Part A. The appropriateness (or otherwise) of this report will be based on the analysis you undertake using the data you produce in Part A and the additional calculations you provide for this part.

Note that you should restrict your report to those concepts specifically covered in Topic One and more generally in Topics 2 to 5, and not discuss the current political situation, environmental issues, or the marketing of alternate energy sources etc. or other interesting but otherwise irrelevant issues.

You are required to provide a report of approx 500 words4 or less (excluding attachments and references), accompanied by relevant calculations. The report can be produced in any formation that you feel is convienent however the final submission must be in readable3 PDF format. Using a Report style is recommended but not compulsory. (25% of the assignment assessment marks)

PART C - The third part requires you to research a behavioural and communication issue related to budgeting and performance evaluation. You are required to refer to the outcomes of Parts A & B to illustrate your answer. An effective budget converts the goals and objectives of an organization into data. The budget serves as a blueprint for management's plans. The budget is also the basis for control. Management performance can be evaluated by comparing actual results with the budget.

Thus, creating the budget is essential for the successful operation of an organization.

Finding the resources to implement the budget - that is, moving from a starting point to the ultimate goal - requires the extensive use of human resources. How managers perceive their roles in the process of budgeting is important to the successful use of the budget as an effective tool for planning, communicating, and controlling.

Required: Discuss the behavioural implications of planning and control when a company's management employs:

An imposed budgetary approach

A participative budgetary approach

Illustrate your discussion with reference to your report for Part B, discussing how the Sales Manager and the Production Manager might respond to the various outcomes of Part B, if the budget had been imposed and contrast that with how they might respond (if differently) had the budget been prepared using a participative budgetary approach.

You are required to provide an answer of approx 500 words5 or less (excluding attachments and references), accompanied by relevant calculations. The report can be produced in any format that you feel is convienent however the final submission must be in readable6 PDF format. The style of your essay or report is not important provided your ideas, arguments and/or recommendations etc are clear and understandable and properly referenced using a accepted reference technique7 (25% of the assignment assessment marks)

(PDF output must be properly paginated, using appropriate page orientation and all columns in tables and schedules should be presented on the page.)

(Essays or reports that significantly exceed the recommended length will not be given any additional marks. A concise clear answer will attract more marks than a long rambling one.)