• BTEC Nationals Business
  • Unit 7: Management Accounting
  • Assessment criteria covered in this activity; P3. P4. M2

Scenario

The directors of The Bee honey Company have been impressed with your work so far for the company. As a result they have recruited you to help them in the future financial planning and budgeting of the business. The directors would like you to review the financial data (below), identify any trends, before using this data to conduct future revenue and expenditure budgets for the organisation.

Year Income   (£m)
2000 0.3
2001 0.7
2002 1.4
2003 1.6
2004 1.9
2005 2.7
2006 4.1
2007 4.9
2008 4.2
2009 2.5
2010 2.5
2011 2.8
2012 3.4
2013 3.9
2014 4.2
Year Costs   (£m)
2000 0.15
2001 0.35
2002 0.7
2003 0.64
2004 0.76
2005 1.08
2006 1.23
2007 1.47
2008 1.26
2009 1.05
2010 1.05
2011 1.176
2012 1.054
2013 1.209
2014 1.302
Year Sales   (m)
2000 0.6
2001 1.4
2002 2.8
2003 3.2
2004 3.8
2005 4.05
2006 6.15
2007 7.35
2008 10.5
2009 6.25
2010 6.25
2011 3.36
2012 4.08
2013 4.68
2014 5.04

Contents of your Report

Your report should include the following;

  • Describe how the budgets from previous years can be used to monitor performance and assess its relative success.
  • Explain how historical data can be used to identify trends and include examples of the use of moving averages to calculate any trends in the data provided.
  • Produce future revenue and expenditure budgets for the organisation based on the trends identified.
  • Identify the different factors that could have impacted on the budgeted figures that have been produced by the company

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