a) Prepare notes that Joe could use to support is position to change the budgetary system. b) Outline the arguments that Joe is likely to put forward to defend the current budgeting approach.

Glenties Food Products Ltd is a food processing and distribution company. The company usually starts it's annual budget preparations in October. The Managing Director, Eric King, usually works closely with the company accountant and departmental managers to have the process completed in November. Eric's view is that the business environment is stable so it makes sense to use the current year's budget as the basis for setting the coming year's budget. Joe Ryan was appointed as the new company accountant at the start of the year. Joe believes there is a better approach to undertaking the budget preparations, but it will require an earlier start and a more comprehensive review of the company's activities. A meeting has been arranged between Eric & Joe to agree on how Glenties should approach its budgetary preparations for the coming years