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Question 2- PART B Required: a) Describe three (3) benefits that...

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Accounting

Question 2- PART B
Required:
a) Describe three (3) benefits that an organization can expect to realize from budgeting. (3 marks)
b) Briefly describe the following concepts of budgeting:
i. Zero-based budgeting. (1.5 marks)
ii. Kaizen budgeting. (1.5 marks)
QUESTION 3- PART A
Required:
a) If the deluxe tours are discontinued, one administrative position could be eliminated, saving the company RM50,000. Assuming no change in the sales of basic tours, what effect would dropping the deluxe tour have on the company's operating income? (4 marks)
b) Refer to the original data. If Kenyir Fishing drops the deluxe tours, Badrul estimates that sales of basic tours would increase by 50%. He believes that he could still eliminate the RM50,000 administrative position. Equipment currently used for the deluxe tours would be used by the additional basic tours. Should Badrul drop the deluxe tour? Assess the decision. (4 marks)
c) Determine other factors that Badrul should consider before dropping the deluxe tours.
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