Toll Free:

Live chat
Order now Log In
Toll Free:

Week 5 Discussion Questions

Week 5 Discussion Questions

The nature of business can sufficiently influence the cash budgeting policy of the organization. It is impossible to run a financial institution or a mall store business without cash. Therefore, businesses that depend on the amount of visitors/buyers daily will need to have more cash fixed in their budget. However, a factory or a plant (in other words – a manufacturing institution) requires cash only once a month when the salaries are to be paid, so the demand of cash may be not that large-scale.

However, this may vary from time period to time period because the planning manager has to consider the accounts receivable, accounts payable, credit and cash expectations of the following quarter and other articles in the financial statement.  Therefore, those businesses with many accounts to be paid for and received require more cash, and typically it is a financial institution like a bank or a credit union.

For example, cash defines the reliability and the liquidity of a bank, and if no cash is available it may lead to total failure. On the other hand, on a plant there might be days when there is little cash available just because it is not needed and there are not as many accounts receivable/payable, and the most part of the payments in cash is transferred to suppliers and staff. However, when it comes to repaying earned interest, dividends, taxes, and capital expenditure there may b a different situation.

Looking at the types of budget used by Kraft Foods Company (UK) we can see that the following types of budget are used: zero-based budget that helps Kraft to start all fresh and involve innovations, income and expenses budget that helps to track all financial changes and forecast for the next period, strategic budget that helps Kraft Foods to take the advantage of the new emerging opportunities, rolling budgets that provide information on the previous 12-months period and forecast for the following year, and activity-based budget that ranks activities by priority and forms the corresponding budget.

A flexible budget is an evaluation tool that adjusts the static budget according to the changes in the volume of activity, and therefore, it cannot be prepared before the period ends. This is a more complex and useful tool than static budget. However, the companies still need to use both of them for effective completion (Averkamp, 2012). Flexible budgeting may be used by any company but it should be particularly considered by the companies that depend mostly on the variable expenses that may even outweigh the fixed ones.

Flexible budgets are useful because they can adjust the existing plan according to the alterations that were made when the time period has already started. It also ties expenses both to the revenue levels and other activities (Averkamp, 2012). Flexible budgeting offers improved performance evaluation along with uncertainty analysis and variance analysis.

Variances take place when certain changes occur in the volume of activities. Variances reflect of how far these changes may go theoretically. It influences the level of variable manufacturing expenses. The analysis of variances provides comparison of the planned costs and the actual costs. It is important to investigate budget variances when the company needs to track the new trends, opportunities, threats and issues emerging in the market (Gelman, 2004). It also provides good control over the expenses, so this analysis should primarily be considered by the companies that run in a competitive market with innovations that ‘pop-up’ on a regular basis. For example, it may be an IT company. Variance analysis is also helpful for businesses that involve many risks (Gelman, 2004).

There are seven major factors of variance that need to be considered for any business: capacity, spending, labor rate, material quantity, efficiency, material price, and labor efficiency. As a manager, I would handle the variances by working out several alternative plans for each possible variance interval trying to meet the budget requirements and pass through the sudden changes successfully. It is impossible to calculate which specific figure form the theory will come to real life, so I would take intervals for my analysis. 



We offer original custom essays in a wide range of subjects. No matter the topic, you will get an impressive essay.


Discussion Board Post

If you want to get the best discussion board post at an affordable price, just apply to our experts for help.


Research paper

If you experience any difficulties in writing research papers, welcome to us. We produce unique academic papers only!



Ask our experienced and highly educated writers to help you write your coursework, and you will get an impeccable and original paper.


Case Study

Use case study writing services offered by our reputable company. We guarantee to deliver only premium papers.



You can buy a unique questions-answers essay from our custom writing agency online. Hire us to help you succeed!


Powerpoint Presentation

Every time you are looking for a place to purchase a high-quality and creative PowerPoint presentation, visit our website.


Term paper

If you need help in writing a quality term paper, contact us. Our skilled writers specialize in creating authentic papers.


Response paper

Hire our experienced writers to produce a perfectly written response paper for you. We are dedicated to your success.



Use the first-class custom formatting service provided by our diligent experts. We can help you format papers in all styles.


Research proposal

If you do not know how to write a research proposal, make use of our superb research proposal writing services whenever you need.



Order a dissertation written by a professional PhD writer. You will be completely satisfied with your piece of writing.


Article Review

When writing an original article review turns out a difficult task for you, entrust it to our professionals to do it in no time.


Literary analysis

If you need expert assistance in writing a literary analysis essay, choose our reliable service to do the job. Order your essay now!



We can help you paraphrase any of your academic papers. Thus, if you need rewriting help, use our services and get high grades.


Reaction paper

Forget about reaction paper writing difficulties! Ask our qualified writers to help you express unique thoughts and reactions on the subject.


Excel Exercises

Leave the details of your Excel assignment to our competent writers, and they will do it professionally and fast, no matter its difficulty.


Annotated Bibliography

Acquire our remarkable annotated bibliography writing services! We charge the most affordable prices and never compromise on quality.


Business Report

In case you need professional assistance with business report writing, turn to our company. We will provide you with a flawless paper.



Purchase a well-structured and unique outline from us online, and get a brilliant paper. We write custom outlines to all papers.

Limited Time Offer
Your 1st Order
Online - please click here to chat