Question

       As a contrast, prepare a thorough budget for the total revenue/cost as per the Management Accounting subject you are now studying and for which you are completing this assignment. This can include a revenue line where your revenue can be assumed to be 20 percent higher than your costing.

Costing can be in terms of 10-15 different costs inspired by any annual report you deem comparable to an academic institution.

*Please use Excel, charts or any other graphical device (e.g. PowerPoints) you deem necessary for presenting your figures clearly.                                                                       

Here’s an example of how you can present the income statement:

			Budget $$
Revenue			xxx
	Income stream A		xxx
	Income Stream B		xxx
Operating Expenses
	Cost A		xx
	Cost B		xx
	Cost C		xx
	(Use as many categories as you deem necessary)
Operating income			x
Other income/Expenses
	Cost d		x
	cost e		x
			x
Net Income			x

4. Compare the above question briefly to an activity-based approach e.g. do you find the terms unit level, batch level, product level or facility level would have improved the example that you have constructed.   

5. Perform question 3 for 1 more non-accounting unit for which you may or not be enrolled.

Now that you have experienced the budgeting process twice, do you feel that an activity based costing process would have presented any advantage over the traditional approach you took in questions 3 & 5?                                                           

Answer 1

Solution :- Budgeted Income Statement are as follows :-