[Anonymous]

I recently started practicing the WC for BEC as is if it were Exam time. This is what I knocked out in 15 minutes. I feel my response is decent and would obtain around 6 out of 7.5 points… Hopefully I am correct. Again, I am very new to the WC portion and would like constructive feedback. I know there are some technical errors etc, but this is what I knocked out in 15 mins. Did i do decent?

Prompt: Write a memo explaining the advantages and disadvantages of creating a formal budget for Hughes Company.

Response:
The purpose of this memo is to explain the advantages and disadvantages of implementing a formal budget for Hughes Company.

The budgeting process is very important for any company that wishes to set and achieve attainable goals. A budget is a comprehensive annual business plan that estimates costs for various departments. The budgeting process predicts costs for specific departments and for an entire organization. The cost expectations are advantageous for a company because they measure efficiency and effectiveness of operations. For example, Hughes Company may wish to set production outputs for their high end electronics based on their previous fiscal year. These budgeted costs allow Hughes company to review their costs on a monthly, quarterly, and annual basis. As a result, the budgeted costs compared to actual costs allow Hughes company to provide excellent feedback to their managers, employees, and departments. Another advantage Hughes company has is they are able to use a master or flexible budget.

However, the budgeting process has a few disadvantages. One disadvantage is the cost to implement the budgeting process. Hughes company may need to hire additional accountants, which could decrease net income, although only by a small amount. Another disadvantage is budgeted costs can be wrong depending on the economic environment and other external factors.

In short, the benefits of creating a budget out-way the disadvantages. Most successful companies have an annual budget that is a comprehensive business plan. I believe Hughes Company will definitely benefit from using a budget.

Please feel free to contact me at any time to further discuss the advantages and disadvantages of creating a budget for Hughes Company.

Sincerely,
XXXX XXXXX, Controller

[Anonymous]

At a quick glance it looks good to me. There are a lot of key words in there that I'm sure will generate points and the overall flow is very well constructed.

I am curious about the conclusion here, most of the NINJA examples don't have a conclusion. Does anyone know if it should particularly be included on the exam to gain points?

“Please feel free to contact me at any time to further discuss the advantages and disadvantages of creating a budget for Hughes Company.

Sincerely,
XXXX XXXXX, Controller”

[Good Lordy Me]

Very well written, that is more than adequate I feel.

Brickell, yes that conclusion should be part of the memo as it rounds out who you are and so on as well addressing your audience.

[Anonymous]

Thanks for the feedback from both of you. It is challenging to write a reply in 15 minutes. I just cranked out what I knew and tried to reply in a constructive manner.

I do believe a short conclusion is a requirement for the prompt. That is what I was told. Thanks again for your feedback guys!

[Author]

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