Budget Management

1. Define a Budget and explain five reasons for preparing a budget in a

company
2. King Enterprise supplies gravel to buildings sites in the Douala
neighborhood. You are given the kilometers covered in the building sites
and the tones of gravel sold

Year 2015 2016 2017 2018 201 2020 2021

9
Distance programmed (KM) 250 320 400 330 300 280 170
Annual sales (000) tones 500 600 700 400 450 480 320

Required

A. Using the scattered diagram, show the evolution of sales over distance
covered
B. Determine the regression line using the high –low method
C. Project sales for a distance of 500KM

3. You are giventhe monthly sales of a company for the years 2020 and
2021 as follows figures are in (000)

Mont J F M A M J J A S O N D
h
2020 800 60 200 200 20 400 800 2000 3200 2400 2200 2000
0 0
2021 1200 40 200 200 40 800 120 2400 4000 3600 2800 3000
0 0 0
Require
 A. Determine the equation of regression using the least square method
B. Calculate the seasonal coefficient
C. Establish the sales projection for the year 2022 taking in to account the
seasonal variations

4 A company that is specialized in the production and distribution of product P

makes the following projections for the consumption of raw materials M (in kg)
for 2022

Projected consumption
January 2850 May 1425 September 1000
February 2660 June 1425 October 3850
March 3040 July 2660 November 1850
April 2945 August 2375 December 1850
The purchase cost of a kg of M is 80 FCFA. The cost of placing an order is
4021.92 FCFA, the holding cost id 9% of the value of the average stock. The
stock of M as at the 31/12/2021 is 3040kgs the lead time is two months.

Required

Using the Wilsons model calculate the

A. Optimum number of orders to make in 2022

B. Calculate the Economic order quantity
C. Using the constant quantity present the sales calendar of the company