Budget Assi1 - part A.docx - Manage Finances within a Budget Assignment 1 Student Yu Chun Lin(Vicky Student ID 9990 Class CC stage 5 Budget Sales

Manage Finances within a Budget Assignment 1 Student: Yu Chun Lin (Vicky) Student ID: 9990 Class: CC stage 5

July August Budget Actual Varianc e Budget Actual Variance Sales revenue 230000 225000 5000 230000 228000 2000 Food Cost 85000 87000 2000 85000 86000 1000 Beverage Cost 14000 15000 1000 15000 15000 -- Labor Cost 77000 82000 5000 78000 82000 4000 Fixed Cost 35000 35000 -- 35000 35000 -- Total Cost 211000 219000 8000 213000 218000 5000 Profit 19000 6000 13000 17000 10000 7000

1. Explain the importance to the owners of monitoring budgets and why do you think it will help them to manage their finances better for the business. a. CASHFLOW CONTROL Budget helps managements know where money spends and how much is spent. There are several parts components which indicate the use of money and the receive of money, such as sales budget, purchases budget, expenditure budget, wage budget, profit and loss statement. b. MOTIVATE STAFF WITH GOALS Setting several targets gives staff motivation to achieve and achievement when they reach it. This improves efficiency and productivity for the company.