Budgeting

For your main Discussion Board post, please discuss the following:

· Explain 2 different types of budgets, and discuss why a company would choose one type of budget over another.

· Discuss the advantages and disadvantages of the zero-based budgeting approach.

Assignment Details (Important)

You were recently hired as Management Director of the new I Can Business Incorporated (ICBI). You have been asked to establish policies and systems for the business. The first one you choose to work on is a financial reporting system.

For this assignment, you must develop a 4–5-page memo that you will deliver to the ICBI Board of Directors. You will describe what a financial reporting system is and explain how the management team at ICBI should use an activity-based budget instead of an operating budget. Be sure to explain the similarities and the differences of the two. Finally, give examples of budget guidelines for ICBI. You must answer the following:

· Describe the meaning and the components of a financial reporting system. 

· Explain the budget process. 

· Describe a budget contingency plan.

· Give an example of financial guidelines that ICBI should follow to successfully plan for finance management. 

· Identify and describe at least 5 basic financial guidelines. 

Remember to use the library or other credible resources to support your argument. Be sure to cite your sources using the correct standard of APA.

Assignment Details (300 or more words, in-text citations, references)

Costs can be categorized in various ways, including the following:

· Fixed versus variable costs 

· Relevant versus irrelevant costs 

· Direct versus indirect

Discuss the following in your main Discussion Board post:

· Why is it important for a company to know the categorization of each cost?  

· Provide an example of each of the cost categorizations above.

· Why is it important to compare actual cost and budgeted cost?