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E2. Farm Fresh LLC is a company involved in making and supplying the diary products such as milk, yogurt, milk chocolates and ice cream in

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E2. Farm Fresh LLC is a company involved in making and supplying the diary products such as milk, yogurt, milk chocolates and ice cream in the Sultanate of Oman. The company uses all the products available inside the country in the production process except only one imported raw material. Ms. Sabeen is the Chief Executive Officer of the company and Mr. Khan is the accounts officer. The purchases department of the company was headed by Mr. Ibrahim, sales department by Mr.Aamir, production department by Mr. Jabir, finance department by Ms. Alia and human resource department by Ms. Nasibha. The company has fixed the objective to earn profit of OMR 40000 during the current year. Ms. Sabeen decides to introduce budgetary control system in the company. ANSWER THE FOLLOWING QUESTIONS: A. Justify the introduction of budgetary control in Farm Fresh LLC by explaining the objectives the company can achieve by the budgetary control system with appropriate examples. (4 Marks) B. In order to introduce Budgetary Control System, it is necessary for the organizations to consider and decide about the pre- requisites for the introduction of an effective Budgetary Control System. Explain with suitable examples the important aspects which are to be considered in organizing the budgetary control system (which is also called as the organization for budgetary control) that will be relevant to Farm Fresh LLC. (6 Marks)

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