Diploma of Leadership and Management

Question: Discuss about theDiploma of Leadership and Management. Answer: Introduction Thy budget figures are listed in the following table and the variations from the budgeted figure is also indicated in separate column. Budget Expenses Budgeted Actual Variance Redesign web site to improve branding $ 5,000 $ 5,225 $ (225) Design and implement an incentive scheme $ 2,400 $ 2,510 $ (110) Conduct a radio advertising campaign $ 10,000 $ 9,800 $ 200 On-line communications newsletters, websites. Blogs - - - Stand at VCE Careers Expo 2016 $ 3,300 $ 3,450 $ (150) Develop and publish 2016 promotional brochure $ 1,500 $ 1,570 $ (70) Sponsor community organization to improve local community profile $ 2,000 $ 2,100 $ (100) Contingency amount $ 800 $ 850 $ (50) $ 25,000 $ 25,205 $ (505) The most of the expenditure were overrun in most of the cases. The expenditure which overrun are as following; Redesign web site to improve branding $225 Design and implement an incentive scheme $110 Stand at VCE Careers Expo 2016 $150 Develop and publish 2016 promotional brochure $70 Sponsor community organization to improve local community profile $100 Contingency amount $50 Introduction: Business needs financial plan. The implementation of the financial plans of companies requires different forecasting methods and techniques to understand cost and benefit (profit) from such business. The budget is one of such tool to measure the business activity and the expected cost to be spent on the business the tool for forecasting the financials (Weygandt et al., 2009). Projected and Actual Budget and Variance: The budget is the statement of the expected cost that would have to be earmarked for the future. It is very obvious that there will be cost overrun in the most of allocations due to time factors and the inflation factor. The proper estimation of the cost is challenging part of affair for any industry and therefore ascertaining the estimation would involve significant brain storming. The variance from the budgeted cost has not been that significant. The total variance in this case stood at $505 which is 2.02% higher than the allocated expenditure (INC, 2015). Overall Level of Variance: The overall level of variance from budgeted expenditure has not been significant. The cost overrun is by 2.02%. The variance of marketing activities is listed as following: Expenses Variance Redesign web site to improve branding $ (225) Design and implement an incentive scheme $ (110) Conduct a radio advertising campaign $ 200 On-line communications newsletters, websites. Blogs - Stand at VCE Careers Expo 2016 $ (150) Develop an publish 2016 promotional brochure $ (70) Sponsor community organisation to improve local community profile $ (100) Contingency amount $ (50) Actual Variance $ (505) Reasons for Overrun: The most important factors for cost overrun are as following; The inflation is the major factor for the cost over runs. As the time passes, the implementation costs increases due to increase in commodity prices and of the materials and also salaries and wages. There are other reasons for the increase in the cost of the goods and the service. Here, the company has allocated a budget each year to spend on marketing. These costs are mostly represented from the service sector. Any increase in the overall cost structure of the service provider, will reflect in the cost allocated or earmarked for specific services (Mymoneycoach, 2016). Proposed Solutions: The implementation is the important part of business activities. If the plans are implemented in time and in proper manner, the company would be able to save significant money. The cost overrun would not be at unbearable stage. Therefore the implementation would be the biggest factor in saving money from cost overrun. Conclusion: These important factors for consideration have to be pondered with, so that the implementation programme does not get delayed for any reason and cost does not hurt the company to much. Budget Expenses Actual Projected Redesign web site to improve branding $ 5,225 $ 5,460 Design and implement an incentive scheme $ 2,510 $ 2,600 Conduct a radio advertising campaign $ 9,800 $ 10,400 On-line communications newsletters, websites. Blogs - - Stand at VCE Careers Expo 2016 $ 3,450 $ 3,650 Develop an publish 2016 promotional brochure $ 1,570 $ 1,620 Sponsor community organisation to improve local community profile $ 2,100 $ 2,250 Contingency amount $ 850 $ 890 $ 25,505 $ 26,870 References: INC, 2015. Budgets and Budgeting. [Online] Available at: https://www.inc.com/encyclopedia/budgetsandbudgeting.html [Accessed 21 September 2016]. Mymoneycoach, 2016. What is Budgeting? What is a Budget? [Online] Available at: https://www.mymoneycoach.ca/budgeting/what-is-a-budget-planning-forecasting [Accessed 21 September 2016]. Weygandt, J.J., Kimmel, P.D. Kieso, D.E., 2009. Managerial Accounting: Tools for Business Decision Making. [Online] Hoboken: books.google.co.in Available at: https://books.google.co.in/books?id=vol37b8_lLECpg=PA402dq=cash+budgethl=ensa=Xei=u8T7VLikJ5XluQSyh4CwAgved=0CD8Q6AEwBQ#v=onepageq=cash%20budgetf=false [Accessed 21 September 2016].