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Rreport on Revisions to the Budget

Task 6 – Propose realistic revisions to the
budget
Based on the outcomes of the budget, at least two realistic budget item revisions must be
recommended to senior management. Suitable evidence must be included to justify these
recommendations.
Answer
Task 6: Proposing realistic revisions for budget
Budget revision: | What evidence supports the need for the revision: | Senior management person reported to and outcome: |
Overhead costs | Suddenly overhead costs increased and started to spin out of control (Shelton and Sharma, 2017, p.3). Excess money had been spent in large amounts on a frequent basis | Finance Manager has been reported to. He had promised to investigate the matter and it is currently under investigation |
Staff salary | Staffs have revolted against work pressure and have informed that their present salary does little justice to their job responsibility | Board of Directors have been reported to. They have decided to specify job roles and have agreed to increment salary based on job performance |
Marketing expenses | Suddenly it has been found that expenditure on marketing purpose has escalated and more than allocated budget money is being spent | Marketing Manager has been reported to. He has asked for revision of budget and had decided to restrict marketing activities to an ideal level (Tonkova, 2016, p.170) |
Sales volume | Recently, there has been a drop in sales volume and comparatively less number of customers have turned up in past few weeks | Sales Manager has been reported to. He has agreed to talk with Marketing Manager and shortly come up with a plan to boost sales volume |

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