August 6, 2017 at 8:25 pm
If you are relying on high passing chances, then choose topic on which you have good secondary information, as both T8 and T17 requires that.August 6, 2017 at 8:27 pm
The issue for most people with Topic 1 is that they do not have the primary data. So they write about the theory and all the different types of budgets whether they are relevant to the company or not and do a questionnaire allegedly asking people simple questions about how efficient the budgeting system is. The result is some sort of wishy-washy unstructured report that is not very convincing as there is no real evidence on which to form an opinion of whether the budgetary system is contributing towards achieving company objectives and improved decision making or not.
What they should be doing after a bit of appropriate theory, is setting out the stages in the budgeting process in their company and looking at the feedback loops. The markers are keen to see a model and I would suggest that a SWOT model can be applied to the process by looking at the strengths that budgeting offers and the opportunities various types of budget offer in terms of expansion plans, efficiency and the disadvantages (weaknesses and threats) e.g. a time consuming process that may be entered into half-heartedly and how without budgeting resource allocation may be compromised and the best use not made of capital and cash. Then there needs to be a comparison of the budgets with the actuals and looking at how variances are dealt with (budget revisions and decisions related to the adverse variances). When this has been done you are then in a position to assess how effectively the whole thing is in terms of improved decision making and helping the organisation achieve its objectives (usually profit maximisation and operating efficiently). There is also scope to make recommendations for improvement. If you can cope with that (and reference well) then you stand a good chance of passing 🙂August 7, 2017 at 3:10 pm
Dear @trephena Thank for your guidance. I have finally decided that i will go through with topic 1.
How you help is easily understandable and easy to grasp. I will keep asking questions from time to time in relation to topic 1 progress.August 7, 2017 at 4:34 pm
One more Important question ! do you think i will need access to budget itself ?
I can get access to variance reports and everything. Get % increase in budgets and all but the company won’t allow me to look at the budget itself ?August 8, 2017 at 7:29 am
You need to get as much information as possible about the budgeting process so that you can set out the stages in Part 2 and to be able to help in Part 3 with the evaluation of whether it is effective for decision making. Ideally you should try to find out how frequently the budgets reviewed and revised; is corrective action taken and if so how frequently? Who is involved in the process – managers or are they imposed? Is there a budget manual? Budget committee?
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