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EXPLAIN THE BUDGET PROCESS IMPLEMENTATION OBJECTIVES

BUDGET PROCESS

1. DEFINE THE BUDGET PROCESS (15% of total Marks).

2. EXPLAIN THE BUDGET PROCESS IMPLEMENTATION OBJECTIVES (20% of total Marks).

3. FOR A RETAIL BUSINESS: A RETAIL SPORTSWEAR SHOP :

a. IDENTIFY THE INFORMATION YOU WOULD NEED TO BUILD AN ANNUAL PROFIT AND

LOSS AND ACCOUNT BUDGET AND PRESENT AN EXEMPLE – WITH FIGURES – (40% of total marks).

b. BASED ON THE ABOVE EXEMPLE, EXPLAIN HOW YOU WOULD CLASSIFY THE PROFIT

AND LOSS ACCOUNT ITEMS (FIXED OR VARIABLE) IN ORDER TO CALCULATE A BREAK EVEN POINT (25% total Marks).

for the break even point formula
BEP = Dermine Sales value which enable zero profit ( at EBIT DA Level , or EBIT or any other level)
Sales – Variable costs – Fixed costs = 0

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