Benefits of Budgeting – NBC Institute

PSAF – Mar 2023 – L2 – Q5a – Public sector fiscal planning and budgeting

Discusses the legislative framework governing public sector budgeting in Ghana and the benefits of budgeting in the public sector.

Question

Budgeting is an essential and mandatory financial management process in the public sector. It plays a significant role in public financial governance.

Required:
i) Discuss the legislative framework for public sector budgeting in Ghana.
(4 marks)

ii) Explain FOUR (4) benefits of budgeting in the public sector.
(4 marks)

Answer

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Tags: Benefits of Budgeting, Budgeting, Fiscal Management, Legislative Framework, Public Sector
Level: Level 2

Topic: Public sector fiscal planning and budgeting
Series: MAR 2023

IMAC – AUG 2022 – L1 – Q2 – Budgeting

Preparation of production forecast and material purchase budget for Kikaw Ltd, and identification of benefits of budgeting.

Question

Kikaw Ltd engages in the manufacturing and trading of two products namely: Product A and Product B. Kikaw Ltd is presently in the process of preparing budgets for the year ending 31 March 2023, and the following information was estimated.

Purchases: Material cost per unit:

Product A
Material X (GH¢200 per Kg)	GH¢550

Sales: The following quarterly sales have been forecasted. Monthly sales are evenly distributed within each quarter.

	Apr-Jun 2022	Jul-Sep 2022	Oct-Dec 2022	Jan-Mar 2023	Apr-Jun 2023
Product A (Units)	84,000	88,200	93,000	96,000	100,800
Product B (Units)	63,000	66,000	67,800	69,000	72,000

Additional information:

Kikaw Ltd operates FIFO method in issuing inventory and maintains a material inventory of 20% of the following quarter’s production requirement.
The policy of the company is to maintain month-end inventory of finished goods equal to 50% of sales of the following month.

Required: a) Prepare a production forecast in units for Products A and B separately on quarterly basis, for the year ending 31 March 2023. (9 marks)

b) Prepare Material Purchase budget for material X in quantity for the first three quarters for product A only. (7 marks)

c) Identify FOUR (4) benefits Kikaw Ltd will gain from preparing budgets. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Benefits of Budgeting, Material Purchase Budget, Production Forecast
Level: Level 1

Topic: Budgeting
Series: AUG 2022

PSAF – Mar 2023 – L2 – Q5a – Public sector fiscal planning and budgeting

Discusses the legislative framework governing public sector budgeting in Ghana and the benefits of budgeting in the public sector.

Question

Budgeting is an essential and mandatory financial management process in the public sector. It plays a significant role in public financial governance.

Required:
i) Discuss the legislative framework for public sector budgeting in Ghana.
(4 marks)

ii) Explain FOUR (4) benefits of budgeting in the public sector.
(4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Benefits of Budgeting, Budgeting, Fiscal Management, Legislative Framework, Public Sector
Level: Level 2

Topic: Public sector fiscal planning and budgeting
Series: MAR 2023

IMAC – AUG 2022 – L1 – Q2 – Budgeting

Preparation of production forecast and material purchase budget for Kikaw Ltd, and identification of benefits of budgeting.

Question

Purchases: Material cost per unit:

Product A
Material X (GH¢200 per Kg)	GH¢550

Sales: The following quarterly sales have been forecasted. Monthly sales are evenly distributed within each quarter.

	Apr-Jun 2022	Jul-Sep 2022	Oct-Dec 2022	Jan-Mar 2023	Apr-Jun 2023
Product A (Units)	84,000	88,200	93,000	96,000	100,800
Product B (Units)	63,000	66,000	67,800	69,000	72,000

Additional information:

Kikaw Ltd operates FIFO method in issuing inventory and maintains a material inventory of 20% of the following quarter’s production requirement.
The policy of the company is to maintain month-end inventory of finished goods equal to 50% of sales of the following month.

Required: a) Prepare a production forecast in units for Products A and B separately on quarterly basis, for the year ending 31 March 2023. (9 marks)

b) Prepare Material Purchase budget for material X in quantity for the first three quarters for product A only. (7 marks)

c) Identify FOUR (4) benefits Kikaw Ltd will gain from preparing budgets. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Benefits of Budgeting, Material Purchase Budget, Production Forecast
Level: Level 1

Topic: Budgeting
Series: AUG 2022

Question Tag: Benefits of Budgeting

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PSAF – Mar 2023 – L2 – Q5a – Public sector fiscal planning and budgeting

Discusses the legislative framework governing public sector budgeting in Ghana and the benefits of budgeting in the public sector.

IMAC – AUG 2022 – L1 – Q2 – Budgeting

Preparation of production forecast and material purchase budget for Kikaw Ltd, and identification of benefits of budgeting.

PSAF – Mar 2023 – L2 – Q5a – Public sector fiscal planning and budgeting

Discusses the legislative framework governing public sector budgeting in Ghana and the benefits of budgeting in the public sector.

IMAC – AUG 2022 – L1 – Q2 – Budgeting

Preparation of production forecast and material purchase budget for Kikaw Ltd, and identification of benefits of budgeting.

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PSAF – Mar 2023 – L2 – Q5a – Public sector fiscal planning and budgeting

Discusses the legislative framework governing public sector budgeting in Ghana and the benefits of budgeting in the public sector.

You're reporting an error for "PSAF – Mar 2023 – L2 – Q5a – Public sector fiscal planning and budgeting"

IMAC – AUG 2022 – L1 – Q2 – Budgeting

Preparation of production forecast and material purchase budget for Kikaw Ltd, and identification of benefits of budgeting.

You're reporting an error for "IMAC – AUG 2022 – L1 – Q2 – Budgeting"

PSAF – Mar 2023 – L2 – Q5a – Public sector fiscal planning and budgeting

Discusses the legislative framework governing public sector budgeting in Ghana and the benefits of budgeting in the public sector.

You're reporting an error for "PSAF – Mar 2023 – L2 – Q5a – Public sector fiscal planning and budgeting"

IMAC – AUG 2022 – L1 – Q2 – Budgeting

Preparation of production forecast and material purchase budget for Kikaw Ltd, and identification of benefits of budgeting.

You're reporting an error for "IMAC – AUG 2022 – L1 – Q2 – Budgeting"

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