Ms. Daneen is the management accountant of Delight Confectionaries which is a company manufacturing chocolates and candies in many flavours since 2017. The company has marketing, finance, production, customer services and human resources department. The management of the company has decided to introduce budgetary control system in the company from the year 2019.

ANSWER THE FOLLOWING QUESTIONS:

A. List, explain and justify the FOUR important budgets which Ms. Daneen will be preparing for the confectionaries company with suitable examples. (8 Marks)

Note: Include the meaning of the budget, the reason for preparing the budget, the period for which the budgets are prepared, along with the justification of why the budget is important.

B. Ms. Daneen wants to prepare rolling budget at the end of every month from the year January 2019. Explain the preparation of rolling budget for Delight Confectionaries by mentioning the preparation from January 2019, number of times budgets will be prepared, period (months) included every time in the budgets. (2 Marks)