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Types of Budget

You are a manager in a fictitious company of your choice. Your director has asked you to explain to the department staff the different types of budgets and techniques in order to provide an overall understanding.

It will be a talk that you will deliver to the department staff and director explaining the different kinds of budgets. Please select or make up your company and its purpose. You will also recommend which type of budget should be used and which budgeting technique would best fit the company. Using an income of 1 Million per year, you must answer the following questions:

- What are the various kinds of budgets? Please explain each.
- Which type of budget is best for your selected company?
- Which type of calendar year will you choose and why?

Any help to understand this would be great! Thanks!

Solution Preview

Good morning Mrs. Director as well as to all of my fellow staff members. As you know I'm the general manger of our company, Mr. Ivan P. Freelance. I have brought you all here together today to discuss the various types of budgets available to our fine company. And with this, I will succinctly display and explain to you which type of budget our awesome company should follow and why this choice is the obvious one for us. As you know our business of running and operating a chain of five different "doggie daycare" facilities is doing very well. We managed to get into a market in our respective areas here in the great Commonwealth of Massachusetts where there is no competition within at least a thirty mile radius of each of all of our state-of-the-art, second-to-none facilities. If we continue to be prudent with our expenses, diligent and tactful with our advertisements and open one more Doggie Days facility in a prime and very, very profitable location we will continue to expand and do excellent for our beloved company.

- What are the various kinds of budgets?

Now let us discuss budget types. They are the ...