Blue Bubble – Assignment BANKING ACADEMY, HANOI BTEC HND IN BUSINESS (FINANCE) ASSIGNMENT COVER SHEET NAME OF STUDENT REGISTRATION NO UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR ASSIGNMENT ISSUE DATE SUBMISSION DEADLINE Unit 9: Management Accounting: Costing and Budgeting Budgetary Planning and Control of Ms Nam Giang Dao 26th June 2012 We, Blue Bubble Group hereby confirm that this assignment is our own work and not copied or plagiarized from any source We have referenced the sources from which information is obtained by us for this assignment Members Full Name English Name Signature Date Đỗ Linh Chi Julie 26 th June 2012 Bùi Thanh Hằng Phoebe 26 th June 2012 Nguyễn Phương Thảo Pitts 26 th June 2012 Cao Nguyên Hồng Anh Chip 26 th June 2012 -FOR OFFICIAL USE Assignment Received By: Date: Blue Bubble – Assignment 2 Unit Outcomes Outcome Evidence for the criteria Feedback Assessor’s decision First attempt Prepare forecast s and budgets for a busines s LO Monitor perform ance against budgets within a busines s Explain the purpose and nature of the budgeting process 3.1 Select appropriate budgeting methods for the organisation and its needs 3.2 Prepare budgets according to the chosen budgeting method 3.3 Prepare a cash budget 3.4 Calculate variances, identify possible causes and recommend corrective action 4.1 Prepare an operating statement reconciling budgeted and actual results 4.2 Rework Internal Verification Blue Bubble – Assignment Outcome LO4 Evidence for the criteria Feedback Assessor’s decision Report findings to management in accordance with identified responsibility centres Internal Verification 4.3 Merit grades awarded M1 M2 M3 Distinction grades awarded D1 D2 D3 Assignment ( ) Well-structured; Reference is done properly / should be done (if any) Overall, you’ve Areas for improvement: ASSESSOR SIGNATURE DATE NAME: (Oral feedback was also provided) STUDENT SIGNATURE DATE NAME : FOR INTERNAL USE ONLY VERIFIED DATE YES NO : VERIFIED BY : NAME : / / / / Blue Bubble – Assignment BUDGETARY PLANNING AND CONTROL Prepared for: Ms Nam Giang Dao The Unit Leader for Managing Financial Resources and Decisions Unit 9: Management Accounting: Costing and Budgeting Banking Academy, Hanoi BTEC HND in Business (Finance) Submitted: 26th June, 2012 Prepared by: Do Linh Chi – Julie (F04-029) – F04B Bui Thanh Hang – Phoebe (F04-054) – F04B Nguyen Phuong Thao – Pitts (F04-156) – F04B Cao Nguyen Hong Anh – Chip (F04-002) – F04B Blue Bubble – Assignment EXECUTIVE SUMMARY Budgets are established with many purposes such as planning the use of resources; vehicle for forecasting; means of controlling the activities of various groups within the firm, motivating individuals to achieve performance levels agreed and set, or communicating the wishes and aspirations of senior management Some examples above have shown the importance of budget in Management Accounting Through budgets, the manager can control activities in the organization by measuring progress against the original plan, making adjustments where necessary In this report, the researchers will show real applications in Phong Phu Company, Vinabike Company, and Riley Labs Form the data is given by three companies; budgeting methods, cash budget, operating statement and performance report are prepared, calculated, analyzed based on the knowledge and investigation of the researchers According to these specific examples, the researchers hope to provide useful information about Management Accounting for readers Table of Contents Blue Bubble – Assignment INTRODUCTION Aims/Purpose, Scope The purpose of this report is to prepare forecasts and budgets for a business At the same time, monitor performance against budgets within the business The scope of the report includes: • Explain the purpose and nature of the budgeting process • Select appropriate budgeting methods for the organisation and its needs • Prepare budgets according to the chosen budgeting method • Prepare a cash budget • Calculate variances, identify possible causes and recommend corrective action • Prepare an operating statement reconciling budgeted and actual results • Report findings to management in accordance with identified responsibility centres Sources of information In this report, sources of information are mainly from our own calculating, analyzing, from the scenario Beside is searching information in the internet and from textbooks Limitation of report Blue Bubble – Assignment The limitation of time to calculate, analyze, present and explain the result of data Blue Bubble – Assignment MAIN BODY Task 1: Operating Budgets Budget definition “A Budget is a plan that outlines an organization's financial and operational goals So a budget may be thought of as an action plan; planning a budget helps a business allocate resources, evaluate performance, and formulate plans” (Ward, 2012) According to “Budgeting for the Better Performance” (published in 2003) budget has four basic characteristics: - The budget must be quantified: it must be indicated by the numbers, often some real - money In addition, the budget may include funds plan on time, workforce planning, … The budget must be prepared in advance: it must be made before the plan to implement - that budget The data in real time or after the budget is not listed in the budget The budget must be applied to a specific period of time: it is made for a period of time - specified (usually a year) The budget is a plan of action: in addition to the actual figures, tables also include budget data related to what has not happened Comparing standard costing and budgeting Standard Costing and Budgeting are intended to help businesses achieve maximum efficiency, as well as good cost control In both methods, the actual performance is compared with predetermined criteria, based on the difference of them for analysis, evaluation and reporting Besides, they also interact with each other, “budgeting is essential to determine standard costs while standard costing is necessary for planning budgets” (Anon, 2012) Blue Bubble – Assignment However, they also have some differences, and they are shown in the table below: BUDGETING STANDARD COSTING Prepared for the short-term operating Prepare for the long-term operating Based on standard cost, historical costs and Based on technical information and is fixed estimates scientifically Used for different functional departments Used mainly for production, management and (sales, production, finance, personnel, etc), so marketing function so it does not require it requires functional coordination coordination between departments Emphasize cost levels should not be exceeded Emphasize the cost levels should be reduced Based on comparison between actual and Based on variances to analysis budgeted results to analysis It is not useful for controlling or reducing costs It is useful for controlling and reducing costs, because it often sets maximum limitation based on the actual measurement is set without considering the cost effectiveness of expenditure It is completed before the beginning of each It is reform when having a change in the basic accounting period assumptions and basis It expresses financial accounts It expresses cost accounts Table 1: The differences between Budgeting and Standard Costing Purposes and benefits of budgeting process Every organization has developed strategies for each period, with using budget they will ensure achievement of the objectives as planned In this scenario, Phong Phu Ltd manufactures and sells two products (A and B with high standard), as well as they are manufactured in two processes (cost centres P1 and P2) According to BPP Professional Education, 2004, page 155, “using a budget has six further purposes/ benefits”, they are show as follow: PURPOSES/ BENEFITS Planning EXPLANATION The managers are always busy with the daily business operations of each department, they tend to avoid formal plan if they are not related to their specific job Therefore, the use of funds will help managers establish a formal plan It enables them to find out the problems in the implementation plan and provide solutions to stop them before they occur in practice In addition, costs Blue Bubble – Assignment Organizing Controlling Co-ordinate activities Communicatin g Motivating 10 to prevent errors that may occur is always less than the cost of error correction after the plan is done so enterprises now often made before the budget work The system of control helps the manager in comparing the actual results with the budget results By dividing economic and human resources in the most financially potential areas, each department can find out the cause leading to each mistake and take the replacement in time By investigating variances of differences between actual and budgeted, the company can find out problems and failures in actual operation, and then taking corrective actions From that, managers can have an insight whether operations are up to expectations Each department has its own responsibility in a company The budgeting process links the plans and financial budgets of each department It can be said that, it encourages communication up the organization from subordinates to superiors, and across departments also For example, there are two cost centres P1 and P2 in manufacturing process of Phong Phu Ltd They have to coordinate closely together to gain the product's quantity or revenue as planned Ava to communicate ideas and plans in a company, a formal system is sorely needed Based on it, the employee can identify their own works in the general plan “Communication might be one-way, with managers giving orders to subordinates, or there might be a two-way dialogue” (BPP Professional Education, 2004, page 155) When there is a system that helps employees to recognize their performance at high or low, good or bad will stimulate them to work hard and maintain an enthusiastic attitude towards the job Besides, it also helps the manager understands the strengths and weaknesses of each employee From that, he/ she can improve or adjust the position reasonably to develop the whole potential of their staff Table 2: The purposes of budgeting process Budgeting methods Every business needs a budget to plan activities There is no right or wrong way to create a budget, but it is the best way to monitor the volume of cash business and predicts its future earnings and expenses There are three pairs of budgeting methods as follow: Blue Bubble – Assignment 32 $4,900(Favorable)  Price Variance = 8,950 (19.5 – 18.8) = $6,265 (F) Variances can be Favorable or Unfavorable In this case, because the Actual Price $18,8 incurred is less than the standard cost $19.5, so the deviation is known as Favorable variance The reason leads to the favorable variance is maybe the production, or the working quality of the employees There could have been recent changes in purchase price of materials, or maybe even the changes in transportation costs and storekeeping costs can also be contributing factors to material price variance Moreover, the effect of the favorable variance increases the profit  Quantity Variance = 19.5 (8,950 – 8,880) = $1,365 (U) From the chart above, we can see that the Quantity variance is Unfavorable ($1,365) The reason is because the Actual Quantity ($8,950) is incurred is more than the Standard Quantity ($8,880) These situation refers to deviation to the loss of the business The possible cause maybe start in the manufacture of the process Sometimes the facilities or because of the machines in the factory have problems or maybe too old to work, so when the products are finished, they would have mistakes and failed in the Testing process  Total Direct materials Variance = $6,265 F + $1,365 U = $4,900 (F) With the result of Price Variance and Quantity Variance, after calculate we will have the result of Total Direct Materials Variance equals to $4,900 And it is the Favorable Variance Issue 1: Blue Bubble – Assignment 33 From the numbers that had been calculated above, Riley Labs company can easily see that the Favorable of Total direct materials variance will gain more profit to the company When the materials were purchased from the new supplier, the company was able to buy more with a cheaper price than expected However, cheaper price is usually goes with lower quality of materials that is why the company will need to use more materials than usual Why? Because of the poor quality of raw materials, the company will produce low quality products or even failed products And of course, such products will be discarded during the inspection or the company will suffer losses when sold on the market So, to compensate for damaged products, the company will have to buy more raw materials further, it means that the company will have to pay more for buy new materials To sum up, with Price variance is higher than Quantity variance, it means Riley Labs will work much more better than normal ($4,900 F) And the recommendation is : The Company should Sign the contract with the new supplier Direct Labor Variances 2.1 Definition According to Business Dictionary (n.d.), Direct labor variances is difference between the standard direct cost and the actual direct labor cost It is the sum of the direct labor rate variance and direct labor efficiency variance Direct Labor rate variance is the difference between the cost of a specific number of budgeted labor hours and the actual cost that was incurred  Following formula is used to calculate direct labor rate variance or direct labor price variance: Blue Bubble – Assignment 34 [Labor rate variance = (Actual hours worked × Actual rate) − (Actual hours worked × Standard rate)] Direct Labor efficiency variance is the difference between the number of hours worked per unit and the number of hours budgeted to be worked per unit, valued at a specific wage rate  Following formula is used to calculate direct labor rate variance or direct labor price variance: [Labor efficiency variance = (Actual hours worked × Standard rate) − (Standard hours allowed × Standard rate)] 2.2 Calculate Actual Hours (AH) Actual Rate (AR) Standard Hours (SH) Standard Rate (SR) = 36 175 = 6,300 hours = $12.20 per hour = 1.5 3,700 = 5,550 = $12.80 per hour Actual rate Actual hour at standard rate Flexible hour rate budget (AH*AR) (AH*SR) (SH*SR) Rate variance Efficiency variance $76,860 $80,640 $71,040 $3,780 (Favorable) $9,600(Unfavorable) $5,820(Unfavorable)  Rate Variance = 6,300 (12.80 – 12.20) = $3,780 F Blue Bubble – Assignment 35 From the chart and the calculation above, it shows a Favorable Labor rate variance because actual rate (12.20) paid for workers are less than standard rate (12.80) Rates paid to the workers are usually predictable However, rate variances can arise through the way labor is used A favorable rate variance would result when workers who are paid at a rate lower than specified in the standard are assigned to the task of the company Production supervisors of Lundor should take responsibility for seeing that labor price variances are kept under control  Efficiency Variance = 12.8 (6,300 – 5,550) = $9,600 U The result for Efficiency Variance is Unfavorable because the Actual hour is more than the Standard hour (750 hours) The purpose of calculating the direct labor efficiency variance is to measure the performance of production department in utilizing the abilities of the workers It is possible that Unfavorable direct labor efficiency is simply the result of recruiting low skilled workers  Total Direct labor Variance = $3,780 F + $9,600 U = $5,820 U The combination of the favorable direct labor rate variance $3,780 and the unfavorable direct labor efficiency variance $9,600 is the Total Unfavorable direct labor variance of $5,820 Issue 2: During November, the company experimented with fewer technicians and more assistants With this changing the system of workers, the company has reduced the amount of wages cause the paid for hiring assistants is cheaper than for senior technicians However, hiring more assistants means that they have lower skilled than technicians and lower quality in working That is why the working process will become slower and take a lot of time for the assistants to produce products Moreover, the work quality is not Blue Bubble – Assignment 36 high, workers will even have to work overtime to meet production demands that the customer set And the company will spend more to pay for their expenses Thus not only the quality of output is not good, but also the company would have to spend more money for the unnecessary expenses To sum up, with the results of Unfavorable Direct labor variance, the recommendation is: Company should not change the system of workers, the labor should remain the same as it used to be Variable manufacturing overhead variances 3.1 Definition The variable manufacturing overhead spending variance is the difference between the actual and budgeted rates of spending on variable overhead The formula is: Actual hours worked x (Actual overhead rate - standard overhead rate) = Variable overhead spending variance The variable manufacturing overhead efficiency variance is the difference between budget allowance based on actual hours worked and budget allowance based on standard hours allowed If the budget allowance based on actual hours worked is more than the budget allowance based on standard hours allowed, an unfavorable variable overhead efficiency variance occurs If the budget allowance based on actual hours worked is less than the budget allowance based on standard hours allowed, a favorable variable overhead efficiency variance occurs The formula is: Standard overhead rate x (Actual hours - standard hours) = Variable overhead efficiency variance 3.2 Calculate Blue Bubble – Assignment 37 Actual Hours = 36 175 = 6,300 hours Actual Rate = $18,900/6,300 = $3 per hour Standard Hours = 1.5 3,700 = 5,550 Standard Rate = $3.2 per hour Actual rate Actual hour at standard rate Flexible hour rate budget (AH*AR) (AH*SR) (SH*SR) Spending Variance Efficiency variance $18,900 _6,300hours *$3.2= 20,160 5,550 hrs*$3.2= $17,760 $1,260(Favorable) $2,400 (Unfavorable) $1,140(Unfavorable)  Spending Variance = 6,300 (3.2 – 3) = $1,260 F The variable overhead spending variance, defined as the difference between the actual variable overhead costs incurred during the period and the standard cost that should have been incurred based on the actual activity of the period, is $1,260 Favorable The spending variance is labeled favorable because the actual variable overhead rate was less than the standard variable overhead rate by $0.20 per hour There are some possible causes of Variable Manufacturing overhead Spending variance like: - Account misclassification: The variable overhead category includes a number of accounts, some of which may have been incorrectly classified and so not appear as part of variable overhead (or vice versa) Blue Bubble – Assignment 38 - Outsourcing Some activities that had been sourced in-house have now been shifted to a - supplier, or vice versa Supplier pricing Suppliers have changed their prices, which have not yet been reflected in updated standards (Source: Accounting tools, n.d., Variable Overhead Spending Variance)  Efficiency Variance = 3.2 (6,300 – 5,550) = $2,400 U The variable overhead efficiency variance, defined as the difference between the actual activity of a period and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate, is $2,400 unfavorable The efficiency variance is labeled unfavorable because the actual quantity of the activity (hours) exceeds the standard quantity of the activity allowed by 750 hours  Total Variable Manufacturing overhead Variance = $1,260 F + $2,400 U = $1,140 U The combination of the favorable Manufacturing overhead spending variance $1,260 and the unfavorable Manufacturing overhead efficiency variance $2,400 is the Total Unfavorable Variable Manufacturing overhead variance of $1,140 Issue 3: According to the Scenario, Variable Manufacturing overhead is assigned to Lundor on the basis of Direct labor-hours Besides, the efficiency of Direct labor is calculated base on the differences between Actual hour (AH) and Standard hour (SH) Furthermore, there is a same calculation with the efficiency of Variable Manufacturing overhead Therefore, it can be seen easily that the relation of two variances It means if the efficiency variance of Direct labor is Unfavorable Blue Bubble – Assignment 39 (U) , the efficiency variance of Variable Manufacturing Overhead is also Unfavorable (U) and reverse  From all the variances calculated above, an operating statement of cost variances is prepared for Riley Labs Company as following: Cost Variances (F) $ (A) $ Material Price variances 6,265 Material Quantity variances 1,365 Labor rate variances 3,780 Labor efficiency variances 9,600 Variable manufacturing overhead spending variances 1,260 Variable manufacturing overhead efficiency 2,400 variances Total variances 11,305 13,365 2,060 Table 29: Operating statement (A) Subtask 3b: FLEXIBLE BUDGET The budget which the manager gave before does not match with the actual budget Therefore, we have to prepare flexible budget for comparison more accurate ANTIGUA BLOOD BANK Cost Control Report For the Month Ended September 30 Cost formula per liter Total Fixed cost Liters of blood collected Variable costs: Flexible Budget 240 320 Blue Bubble – Assignment 40 Medical supplies Lab tests Refreshments for donors Administrative supplies Total variable cost: $ 14 $ 3,360 $ 4,480 11.5 2,760 3,680 6.2 1,488 1,984 480 640 $ 33.7 $ 8,088 $ 10,784 8,000 1,000 500 225 9,725 8,000 1,000 500 225 9,725 $17,813 $20,509 Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost: 8,000 1,000 500 225 9,725 Total cost: Table 30: Flexible budget  Note for table 30: Variable costs are cost of labor, material or overhead that changes according to the change in the volume of production units   Variable cost per liter of the flexible budget: • Cost per liter of medical supplies = $3,360 : 240 = $14 • Cost per liter of lab tests = $2,760 : 240 = $11.5 • Cost per liter of refreshments for donors = $1,488 : 240 = $6.2 • Cost per liter of administrative supplies = $480 : 240 = $2  With the level of activity 320 liters, variable costs are: • Cost of medical supplies = $14 x 320 = $4,480 • Cost of lab tests = $11.5 x 320 = $3,680 • Cost of refreshments for donors = $6.2 x 320 = $1,984 • Cost of administrative supplies = $2 x 320 = $640 Based on the flexible budget which we just prepared above and the data gathered by government about the actual quantity, accounting manager has prepared a new report for Antigua Blood Bank on September as following: Blue Bubble – Assignment 41 ANTIGUA BLOOD BANK Cost Control Report For the Month Ended September 30 Cost Total formula Fixed Flexible per liter cost Budget Actual Results 320 320 U Liters of blood collected Variances Variable costs: Medical supplies $14 $4,480 $4,650 $17 Lab tests 11.5 3,680 2,800 880 F Refreshments for donors 6.2 1,984 2,188 204 U Administrative supplies 640 620 20 F 33.7 10,784 10,258 526 F Total variable cost: Fixed costs: Staff salaries 8,000 8,000 8,000 Equipment depreciation 1,000 1,000 1,400 400 Rent 500 500 500 Utilities 225 225 250 25 U 9,725 9,725 10,150 425 U $20,509 $20,408 Table 31: New performance report for September $101 F Total fixed cost: Total cost: U  Note for table 31: After calculating the flexible budget used the same level of activity with actual results (320 liters), we can compare both of them and calculate variances From the result above, we can see that the variance between the actual and budgeted of costs of administrative supplies ($20) and cost of utilities ($25) are quite small The variance of utilities is unfavorable and the variance of administrative supplies is favorable With these Blue Bubble – Assignment 42 differences, we not need to investigate because the waste of investigation will be higher than these variances In addition, we also should not investigate the variance of Medical supplies This situation due to the influence of external factors on Blood Bank and they cannot control In this particular situation, the actual medical supplies cost is higher than the budgeted medical supplies cost because of the hurricane largely bypassed Antigua Therefore, the medical demand increase led to the actual medical supplies cost increase, so that; the variance of this one also does not need to investigate In this table, we also can see that the variance of lab tests is very high ($880) and it is favorable It means that the actual is lower than the budgeted The variance is quite high, so that, Blood Bank manager should investigate the reason and improve this reason to be better The variance of refreshments for donors is quite high (U - $204) It means the actual cost is higher than the budgeted cost Managers should investigate of this bad result to control this one For overall, the total variance of variable cost is $526 and it is favorable It seems to be the good situation of Antigua Blood Bank and this bank should maintain it The last variance cost is also high is equipment depreciation cost The actual cost of this one is higher than the budgeted cost ($400) That is unfavorable and it is not good for Blood Bank Managers should investigate the reason to reduce these costs and control this one In conclusion, the managers of Antigua Blood Bank can see in the new performance for September to recognize which cost is Favorable and which one is Unfavorable Based on that, they might find out the reason of both these variances Depends on these reason, they can improve the favorable variances and reduce and control the unfavorable variances CONCLUSION Blue Bubble – Assignment 43 Budget forecasting is an important tool for any business owner Knowing where the company is going in the following year will help to make purchasing, staffing and pricing decisions Although there are no forecasting techniques to predict the future perfectly, a budget forecast based on a clear set of variables will help to increase opportunity for the business to follow a positive direction Budget forecasting can be prepared by the support of some budget methods like fixed or flexible budget, incremental budget or zero based budget, and top down budget or bottom up budget Beside forecasted budget, monitoring performance against budget such as unfavorable variances between budgeted and actual results is also important From that, the management can have appropriate adjustments or make another plan that is more feasible in the future Moreover, the company might evaluate its performance and capacity to control the budgets of the management APPENDIX Blue Bubble – Assignment 44 REFERENCES Anon (n.d.) Accounting for Management [online] Available at: http://www.accounting4management.com/direct_labor_efficiency_variance.htm [Accessed on 24th June 2012] Anon (n.d.) Accounting for Management [online] Available at: http://www.accounting4management.com/direct_labor_rate_variance.htm [Accessed on 24th June 2012] Anon (n.d.) Accounting for Management [online] Available at: http://www.accounting4management.com/direct_materials_quantity_variance.htm [Accessed on 24th June 2012] Anon (n.d.) Accounting Tools [online] Variable Overhead Spending Variance Available at: http://www.accountingtools.com/variable-overhead-spending-var [Accessed on 26th June 2012] Anon (n.d.) Accounting Tools [online] Variable Overhead Efficiency Variance Available at: http://www.accountingtools.com/variable-overhead-efficiency-v [Accessed on 26th June 2012] Anon (n.d.) Business Dictionary [online] Available at: http://www.businessdictionary.com/definition/direct-labor-efficiency-variance.html [Accessed on 25th June 2012] Anon (n.d.) Business Dictionary [online] Available at: http://www.businessdictionary.com/definition/direct-labor-rate-variance.html [Accessed on 25th June 2012] Anon (2003) Budgeting for the Better Performance 4th ed New York: Elsevier Science Anon (2012) “Fixed budget definition” [online] Available at: http://www.investorwords.com/1990/fixed_budget.html [Accessed on 20th June, 2012] Blue Bubble – Assignment Anon, n.d 45 “Incremental Budgeting” [online] Available at: http://tutor2u.net/business/accounts/incremental-budgeting.htm [Accessed on 21th June, 2012] Perego (2006) “Lecture 8” [online] Available at: http://www.scribd.com/doc/6894688/23/Advantages-of-Flexible-Budgets [Accessed on 21th June, 2012] Anon Managing Cash Flow, n.d [online] Available at: http://210.46.97.180/zonghe/book/116%E5%B0%8F%E4%BC%81%E4%B8%9A%E7%AE%A1%E7%90%86%E4%B8%8E %E4%BC%81%E4%B8%9A%E5%AE%B6%E7%B2%BE%E7%A5%9E %E7%B2%BE%E8%A6%81%EF%BC%88Essentials%20of%20Entrepreneurship %20and%20Small%20Business%20Management%EF%BC%89-%E5%8C %97%E4%BA%AC%E5%A4%A7%E5%AD%A6%E5%87%BA %E7%89%88%E7%A4%BE%EF%BC%92%EF%BC%90%EF%BC%90%EF%BC %92%E5%B9%B4%E5%87%BA%E7%89%88-Thomas%20W.%20Zimmerer %E8%91%97/chapter8.htm [Accessed on 22nd June, 2012] Anon n.d “Overview of Bottom Up Budget” [online] Available at: http://www.finweb.com/financial-planning/overview-of-bottom-up-budgeting.html [Accessed on 21th June, 2012] Arthur n.d “Top- Down Method” [online] Available at: http://smallbusiness.chron.com/topdown-method-23876.html [Accessed on 21th June, 2012] Blue Bubble – Assignment Anon n.d “Zero 46 Based Budgeting” [online] Available at: http://tutor2u.net/business/accounts/zero-based-budgeting.htm [Accessed on 21th June, 2012] Ward (2012) “Budget Definition” [online] Available at: http://sbinfocanada.about.com/od/management/g/budget.htm [Accessed on 20th June, 2012]