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Unformatted text preview: What are the reasons that causing your budget to be rejected or cut to some extent? List at least five (5) reasons. (5 marks) 8. Reaching a consensus is the goal with any negotiation whether it be internally or externally. What should you consider when entering the negotiation process? Describe at least eight (8) considerations. (8 marks) X Budget Manageme... ADDENDUM | @ 2018 YOUNG RABBIT TY LTD. AUSTRALIAN PACIFIC COLLEGE NS50215 DIPLOMA OF A IG | BUDGET MANAGEMEN 12 9. You have been asked to prepare the annual budget for a small business, however, the review process results in your draft budget plan being rejected due to your management's desire to cut costs. They have targeted discretionary costs such as travel, conference and advertising costs because the fixed costs cannot be changed. In addition, they also ask you to explore areas of opportunity to cut costs in both goods and/or the freighting of goods. What should you do? (Hint: You may need to consider which departmental managers you may negotiate, and what matters you should negotiate with them.] (4 marks) 10. What is the benefit of effective negotiation? (1 mark) 11. a. What is a milestone in budgets? (1 mark) b. Identify the first milestone on the following graph, and explain your choice. (2 marks) Revenue Forecast $350,000 $300,000 $300,000 $250,000 $255,000 Revenue $200,000 $212,550 $150,000 $162,000 Revenue $100,000 $50,000 $60,000 SO September December Break-even March June c. Provide one (1) example to explain why the KPIs are important indicators of business and operational performance and may have a direct or indirect implication for the financial position of the organisation. (2 marks) 12. What is the difference between horizontal trend analysis and vertical trend analysis? (4 marks) 13. There are many methods of developing sales forecasts. They can be categorised into qualitative and quantitative methods. What are the differences between qualitative methods and quantitative methods? (Hint: You should consider the differences in definition and the situations where each method is most appropriate.) (4 marks) 14. The sales manager for APC Pty Ltd has decided to use statistical modelling to help prepare the sales forecasts for the year ahead. The forecast figures for 2018 will be based on linear extrapolation of the last three years of sales volumes. With the assistance of Excel, work out the forecast figures for 2018. (Hint: You should only complete the following table. No need to submit the ADDENDUM | @ 2018 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE FNS50215 DIPLOMA OF ACCOUNTING | BUDGET MANAGEMENT_V3.1...
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