BTEC Level 3 Unit 2,D3
D3: Evaluate the problems Glory Tables have identified from unmonitored costs
and budgets.
I will evaluate the problems Glory Tables have identified from unmonitored costs
and budgets and explain why it is important for these to be controlled and the
advantages and disadvantages of controlling costs and budgets. I will also
explain the potential prospects of what could happen to the business if the costs
and budgets are not monitored.
It is critical for an organisation to control costs so that they can manage its
financial resources effectively and efficiently. By controlling that costs effectively
they end up saving money on expenses and increase their revenue. This insures
that the company increases its revenue and it allows them to reinvest more
money if necessary. An example of this would be, glory tables should ensure that
they control their costs so that they save money and they must insure that they
have the correct amount of store so that they gain from selling the stock and we
receive cash which can be used for different aspects of glory tables.
Within the organisation glory tables, budget represents good estimate of the
future costs and budgets. Budgets are split into two classes; operating budgets
and capital budgets.
The operational budgets are aimed to achieve the short-term operational goals
within the organisation, for example, any profit or production goals within Glory
tables. The capital budgets are aimed at specific expenditures the new projects
and they regularly need specific financing
.
It is critical that glory tables control the budget. Budgets allow glory tables to see
whether they have a sufficient amount of money to enhance glory tables or to
generate and more profit. It is also known that an organisation must control their
budget in order for it to be able to finance the period of the budget. The budget
will ensure that glory tables reach their targets and goals. Positive controlled
budgets ensure that businesses are able to manage their financial resources
effectively and efficiently.
Uncontrolled budget can decrease the profit of the business therefore it is critical
for glory tables to manage their costs. If they do not succeed in generating
enough profit then they may end up in either debt or bankruptcy. If they do you
not Control their costs and budgets efficiently than they wouldn’t be able to
assess and evaluate the finances. Also if they are unable to manage and control
their budgets then it would be a lot harder for them to reach their objectives and
targets. This also means that they could spend more money than they take in, or
they may not spend enough money to be able to expand the business and
compete effectively.
Advantages and Disadvantages:
These are the advantages of glory tables monitoring their budgets well:
They are able to manage their financial resources effectively
They are able to achieve the goals they set for each of the units
They serve as a benchmark for controlling ongoing operations
D3: Evaluate the problems Glory Tables have identified from unmonitored costs
and budgets.
I will evaluate the problems Glory Tables have identified from unmonitored costs
and budgets and explain why it is important for these to be controlled and the
advantages and disadvantages of controlling costs and budgets. I will also
explain the potential prospects of what could happen to the business if the costs
and budgets are not monitored.
It is critical for an organisation to control costs so that they can manage its
financial resources effectively and efficiently. By controlling that costs effectively
they end up saving money on expenses and increase their revenue. This insures
that the company increases its revenue and it allows them to reinvest more
money if necessary. An example of this would be, glory tables should ensure that
they control their costs so that they save money and they must insure that they
have the correct amount of store so that they gain from selling the stock and we
receive cash which can be used for different aspects of glory tables.
Within the organisation glory tables, budget represents good estimate of the
future costs and budgets. Budgets are split into two classes; operating budgets
and capital budgets.
The operational budgets are aimed to achieve the short-term operational goals
within the organisation, for example, any profit or production goals within Glory
tables. The capital budgets are aimed at specific expenditures the new projects
and they regularly need specific financing
.
It is critical that glory tables control the budget. Budgets allow glory tables to see
whether they have a sufficient amount of money to enhance glory tables or to
generate and more profit. It is also known that an organisation must control their
budget in order for it to be able to finance the period of the budget. The budget
will ensure that glory tables reach their targets and goals. Positive controlled
budgets ensure that businesses are able to manage their financial resources
effectively and efficiently.
Uncontrolled budget can decrease the profit of the business therefore it is critical
for glory tables to manage their costs. If they do not succeed in generating
enough profit then they may end up in either debt or bankruptcy. If they do you
not Control their costs and budgets efficiently than they wouldn’t be able to
assess and evaluate the finances. Also if they are unable to manage and control
their budgets then it would be a lot harder for them to reach their objectives and
targets. This also means that they could spend more money than they take in, or
they may not spend enough money to be able to expand the business and
compete effectively.
Advantages and Disadvantages:
These are the advantages of glory tables monitoring their budgets well:
They are able to manage their financial resources effectively
They are able to achieve the goals they set for each of the units
They serve as a benchmark for controlling ongoing operations
