Consider your current position, or consider a job that you might like to have in the...

Consider your current position, or consider a job that you might like to have in the future. Describe how budgeting might affect you in that role.

Expert Solution

I would like to have the job of a financial analyst in the future. Budgeting affects all departments of the company, however it particularly affects the finance department as they are responsible for reporting the final numbers to the top mangement and explain any variances.

In the role of a financial analyst, I would have to compare the actual sale of goods/services with the volume projected in the budget. Further, the pricing of the products in comparison to budgeted pricing shall also be need to be looked into. Once the topline is checked, the budgeted cost in comparison to actual cost and any increase/decrease shall need to be analysed. If the cost has increased, cost saving measures shall need to be deployed. If the cost has decreased, the reasins for the same will be unearthed, and will serve as a benchmark in coming periods.

Further, specific nature of expenditure i.e \. capital expenditure and revenue expenditure shall also be compared with the budget to ensure that one is not compensating the other. Overall, even in the day to day work, the budget shall play an important role.

ekkarill92 answered 1 year ago

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