Budgeting

Question 1

What type of Budget and Approach does Backoffice have?

Answer 1

Backoffice has a

Question 2

What is a rolling budget?

Answer 2

Budgets produced on quarterly/monthly basis, instead of annual budgeting

Question 3

What is main feature of rolling budget?

Answer 3

-They are flexible so can be easily adjusted if need be

Question 4

What are the main performance measures for Budgeting?

Answer 4

-customer satisfaction
-innovation
-production times

Question 5

What is Benchmarking?

Answer 5

-targets created based on competitor standards/targets

Question 6

What is Future Focus?

Answer 6

-Focusing on events that happens in future rather than past

Question 7

What is Innovation?

Answer 7

Encouraging flexibility and new ideas

Question 8

What is the purpose of innovation

Answer 8

Innovation is encouraged to bring flexibility and new ideas

Question 9

What is meaning of participation in Budgeting?

Answer 9

Participation is when lower level people are actively involved in budget setting.

Question 10

What is the problem with Back office’s budget approach?

Answer 10

It is

Question 11

What are the advantages of beyond budgeting?

Answer 11

-PLANNING is continuous and organisation likely to be proactive

-CUSTOMER FOCUS, targets become challenging and more market focused

-INNOVATION, more ideas and creativity

• PARTICIPATION, managers and lower level people more involved so more motivation

-BETTER INFO SYSTEMS, beyond budgeting creates systems - fast and open info throughout organisation

Question 12

What is Big Data Analytics?

Answer 12

Data from external sources that can influence budgeting (e.g News & Social media)

Question 13

What is the significance of Big Data Analytics?

Answer 13

Enhances accuracy and efficiency of budgeting.

Question 14

What are the limitations of using external sources of info for budgeting?

Answer 14

-external info may be inaccurate (kannan does not use 3rd party sources)

-info may not meet needs of the business for our budget preparation

-info may be out of date

Question 15

What is Feedfordward Control?

Answer 15

comparing what we expect to happen with forecast and what is CURRENTLY expected to happen

Question 16

What are the advantages of Feedforward Control?

Answer 16

-Makes taking action much easier (better cost control as you can action quicker)

-Allows us to forsee possible constraints to budget in advance (e.g sales keep up with demand)

• useful for forecasting as there is constant need to update and adjust the models going forward