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(c) (i) Explain the reasons for Police Scotland preparing budgets as shown in Exhibit 2 - Scottish Highers Business Management - Question c - 2022
Question c
(c) (i) Explain the reasons for Police Scotland preparing budgets as shown in Exhibit 2. (ii) Describe the impact of Police Scotland’s forecasted increasing expendi... show full transcript
Worked Solution & Example Answer:(c) (i) Explain the reasons for Police Scotland preparing budgets as shown in Exhibit 2 - Scottish Highers Business Management - Question c - 2022
Step 1
Explain the reasons for Police Scotland preparing budgets as shown in Exhibit 2.
Answer
Police Scotland prepares budgets to effectively manage its resources and ensure financial accountability. One key reason for budgeting is to compare actual performance against estimated performance. This allows the organization to identify areas where spending is higher or lower than anticipated, leading to better planning for future needs.
Additionally, preparing budgets helps in highlighting areas of overspending, which can be used to make informed decisions about reallocating resources or seeking further funding. This process facilitates a comprehensive analysis of financial obligations and aids in securing additional financing or adjustments needed to meet operational goals.
Step 2
Describe the impact of Police Scotland’s forecasted increasing expenditure, as shown in Exhibit 2.
Answer
The forecasted increasing expenditure for Police Scotland could have several significant impacts. Firstly, it may necessitate budgetary cuts in other areas or the need for downsizing within the organization, potentially affecting staffing levels and operational efficiency.
Furthermore, increased expenditure could compel Police Scotland to seek an augmented budget from the Scottish Government, potentially influencing policy discussions regarding funding for law enforcement. An increase in expenditure may also lead to higher taxes as the Scottish Government may need to address the rising costs associated with enhanced police services.