ou 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.
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