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Part I). 1…



Part II)



3.. etc..)

Part I) Budgeting in any organization, whether it is for-profit, nonprofit, or even a governmental agency, is important for: income planning and monitoring; revenue versus expenses; resource management; and successful financial planning.

1. Provide an example as to why these reasons are so important for organizations to budget.

2. What are the types of budgets organizations can use? How are they different and why would a company choose one type over another?

3. How can you apply what you will learn in this class to your personal and professional life?

Part II) Answer 2 questions.

You have been hired as an executive director of a small nonprofit organization. Among your many duties are to determine an annual budget and develop a fiscal plan for the organization. 

1. How would you approach this project?

2. What types of sub-budgets should you also consider? Explain.

Part III) Answer 3 questions Costs can be categorized in the following ways:

· Actual vs. budgeted cost

· Full cost vs. direct cost

· Fixed vs. variable vs. mixed costs

· Relevant vs. irrelevant costs

· Product vs. period

· Direct vs. indirect

Discuss the following questions:

1. Why is it important for a company to know the categorization of each cost?

2. How can this information be used in decision making?

3. Provide an example of each of the cost categorizations above.

Part IV) Answer the 2 questions Today, many companies face budgetary challenges on a continual basis. Two critical aspects that businesses lack are effective control practices and monitoring.  

1. What are some examples of effective control practices and how do they help address budgetary challenges?

2. What types of challenges could exist in monitoring and maintaining the controls?

Part V) Answer the 2 questions

Budget monitoring is necessary to make sure that businesses and organizations do not experience net loss and that operational expenses do not exceed the projected revenue for the budget period. Budgeting protects the resources in a company and ensures that funds are properly accounted for and used for their initial intention.

1. What are some examples of vulnerable asset areas that pose risk for companies?

2. Do these areas vary by company or industry? Why?

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