Summary
Summary 3.9 Busgeting
- Course
- Institution
- Book
3.9 Budgeting IBM Textbook with ISBN 3.9 Budgeting
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Case BAM Business Management for the IB Diploma Coursebook
-
IB business management, 2.4 Motivation
-
Summaries for Business Management for the IB Diploma Coursebook SL/HL
Seller
Follow
marcellacarlaarifin
Content preview
3.9 Budgeting(a) State two other ways to measure the market size of the coach travel industry.
One way to measure the market size of the industry is by its volume of sales (units sold).
Another way is through the value of goods sold (revenue).
(b) Explain the importance of budgeting to businesses such as GDCC.
Budgeting is important for businesses like GDCC as it ensures effective allocation of its
resources to ensure the business is being as efficient and productive. With proper
budgeting, GDCC will have better management of their cash flow in order to ensure they
won’t be making losses. For instance, to celebrate the company’s 20 th anniversary, they are
planning to issue 100,000 free coach tickets to customers. With proper budgeting, it will be
ensured they plan a strategy so the cost of issuing 100,000 free tickets will not bring losses
to the business.
(c) Explain two limitations of using budgeting for GDCC.
Budgets are only used for estimation and does not fully reflect what the business would
require in the future, therefore it is not fully reliable to be used. For instance, it can be
predicted that a business will be able to save up half of its cash flow in the following year,
however, with a sudden pandemic, the business’ budget may not go as planned. Hence, not
fully reliable. Another limitation of using budgeting is that it is time consuming and will have
to be constantly updated as it is only effective for the short term and to meet short term
goals.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller marcellacarlaarifin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R140,90. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now