Revenue Budget(s)s - Case Study Example

Part 2 The changes in the surplus and deficit are attributed to the change in license system from an old style to a newer system. Part 3 If the number of vehicles failing inspection would increase then this would increase the revenue obtained from the vehicle inspection fees by an additional 15%. Therefore making standards tougher would result in more vehicles failing the inspection and subsequently lead to an increase in revenue. This would be beneficial to the organization.Part 4a) If the new system is implemented at the beginning of the year, there would be higher deficits in general for that financial year.

This is because the cost incurred by the organization in contracting outsiders for the licenses is much higher for the new license as compared to the old driver’s license.b) If the new licenses are not implemented during the coming year then there would be an annual surplus that is more than what is currently expected. This is because of the reduction in costs related to the new system.Part 5I think implementing the new system in a piecemeal basis would be more beneficial. This is because if a pilot program is used initially then the organization would be able to identify the necessary changes to undergo in order to improve the system.