Tata Travel Trailer

The procure budget and cash budget are lot simpler, since the amount related to production Is the same every month. The budgets assuming stable production benefit the production department, the purchase department, and the human resource department. It helps all these departments intimately manage all kinds of resources and activities on a stable level. Disadvantage of preparing master budgets assuming stable productions 1. If sales are eraal, stable productions may cause inventory under stock during the best sales season and may cause inventory overstock during the poor sales season.It would Increase the Inventory and additional finance needed. Data should plan the production budgets based on sales forecast. In devote to encourage the managers to crop as a team, Tats bonus system could set an overall goal, for example, the net Income. The bonus will be earned 10% If overall goal Is reached. Second, Data should prepare flexible budgets to estimate total address for the differ ent levels of satellites. For example, to access purchase budget performance, compare the actual purchase with the budget recess on ten same production level.It could Aviva punishing ten purchase manger in order to memory the amount of raw material on hand policy set by production manager. use flexible purchase budget holds responsibility for variances only under purchase managers control and truly confer the efficiency and actual performance. Third, other pacement should be in a place in order to attain the organizations overall performance. For sales manager, the percentage of retiree customers in total sales is used to measure the continuing sales growth for Data.For production manager, the warranty expense and customers complaints for poor quality can be used to measure how well Tats products meet the market expectation. For the purchase manager, handling material in judgment of conviction can be used to measure to ensure Tats production is under schedule. Also the Just-in- time vendor snub can be used to measure the performance of purchase manager, since it would lower the material cost. For finance manager, bring management can be used to measure the performance, since Tats uneven sale, managing cash inflow and outflow are important for Data to meet payments due.