Task 1 Answer the following questions in the spaces provided. A. Explain what is meant by the term ‘Budget’ (100 words). Answer: B. Identify four stages of strategic planning cycle and briefly explain how each stage of strategic planning cycle affects the budgeting operations of a company (150 words). Answer: C. Assume you are employed by a white goods distributor and have been asked to prepare a list of controllable (those things that the business can directly influence) and uncontrollable (those things that the business can’t directly influence) factors that might affect the sales of refrigerators in the coming year. Supply a list for the next management meeting. You must supply at least 3 controllable and 3 uncontrollable factors. Answer: D. Explain the principles of double-entry bookkeeping and how they affect the budgeting process. (100 words). As an example, sales budgets will impact cash as well as income. Answer: E. What is a variance? Describe favourable and unfavourable variances. What action would you take if there was a very large variance? (100 words) Answer: F. Statistical analysis is a way of looking at the correlation (relationships or trends) between two or more variables. How could statistical analysis be used in budget reporting? (50 words) Answer: G. Name and describe three forecasting techniques (100 words) Answer H. How often should the budget be monitored? When must budget reports be prepared? When must financial statements be prepared? Reference the organisation’s policies and procedures.