MEDIA Assignment: Budget Planning and Control

Before approaching this assignment, be sure that you have watched the following video.
Budgetary Planning featuring Babzcakes *FULL woem (2016). YouTube.
Babycakes, a specialty bakery, is the company that will be considered for all parts of your
budget planning and control report. For this assignment, you will develop a three to four (3
4) page, paper in which you address the following.

1. Briefly discuss the ways’a realistic budget will benefit the owner of Babycakes
versus having no budget at ail. Be sure to use Babycakes as the company and
any specific product details in your explanation.

2. Prepare a sales budget fer the LA Babycakes store for the 4th quarter of 2016.
Present the number of units, sales price, and total sales for each month;
include October, November, and December, and a total for the quarter. Use
one-half of the Valentine’s Day sales as the basis for a usual day in the new quarter.

Use 30 days for each month. Calculate the total sales for each month for October,
November, and December.

3. Create three (3) new products, one (1) for each of the three (3) holiday seasons in
the 4th quarter. Estimate the sales units, sales price, and total sales for each month.
Describe the assumptions used to make these estimates. include an overview of the
budget in the report, presenting the actual budget as an appendix with all data and
calculations. Add these amounts to your sales budget.

4. The owner of Babycakes is interested in preparing a flexible budget rather than the
static budget she currently uses. She does not understand why, when sales
increase, her static budget often shows an unfavorable variance. Explain how a
flexible budget will overcome this problem. Use the details of your newly prepared
budget for the 4th quarter of 2016 to address her concern.

5. Imagine that Babycakes is facing a financial challenge that is causing the actual
amount of money that it spends to become significantly more than its budgeted
amount. Include a discussion of’your own unique cause of the overspending.
Explain the corrective actions needed to address these challenges.