Explain the budget contingency plain importance in about 4–5 paragraphs . Think of 2 scenarios or events that could happen in which a budget contingency plan is needed. You must answer the following:
- Explain the need for a budget contingency plan
- Identify two (2) events or problems that could occur in which a budget contingency plan is needed.
- Add three (3) budgeting guidelines to prevent the risks or problems you identified in question #2.
In your own words, please post a response to the Discussion Board and comment on at least two other postings. You will be graded on the quality of your postings.
You were recently hired as management director of the new I Can Business Incorporated (ICBI). You have been asked to establish policies and systems for the business. The first one you choose to work on is a financial reporting system.
For this assignment, you must develop a memo that you will deliver to the board of directors of ICBI. You will describe what a financial reporting system is and explain how management of ICBI should use an activity based budget instead of an operating budget. Be sure to explain the similarities and the differences of the two. Finally, give examples of budget guidelines for ICBI. You must answer the following questions:
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- Describe the meaning and the components of a financial reporting system.
- Write a description of how management should use an activity based budget instead of an operating budget
- Explain the similarities and differences of the two budgets
- Give an example of budget guidelines that ICBI should follow in order to successfully plan.
- Identify and describe at least five (5) basic budget guidelines