This report will be based on British Airways and I would be illustrating the use of budgets of their financial controls and evaluating the importance of why costs need to be controlled to budget. To conclude, I would clarify how the running resources and controlling the budget can improve on the performance of B.A. Furthermore, I would evaluate the issues and problems recognised from unmonitored costs and budgets. Pass: A budget is when a business or individual have a certain amount of money to spend. Relating this to B.A, this organisation has a budget as it is a process of preparing financial reports which are expected in the present and future.
A budget may be a set of interlinked plans that quantitatively describe AN entity\'s projected future operations. A budget is employed as a yardstick against that to live actual in operation results, for the allocation of funding, and as an idea for future operations. The budgeting method usually begins with a method designing session by senior management. The management team then applies the united strategic direction to a series of plans that roll up into a master budget. The plans embody a sales budget, production budget, direct materials budget, direct labor budget, producing overhead budget, sales and body budget, and stuck assets budget.
Budgeting can be defined as a solid process to decide the estimate of revenue and expenditure for the specific time period. This definition of budget serves for all, country, city, state, business or personal matter. It is observed that, each successful company never moves forwards without deploying budget process (Al-Shawabikah, 2000). So, talking about Personnel Budgeting, it is one of the crucial aspects of any business to keep labor or personnel budgeting in the mind at the start and end of the year to maintain or increase productivity and profitability of the business. In fact, it is similar to an operational plan, represented in the financial terms considering income and expenditure’s estimation (Dees & Paul, 2004).
(Investopedia. 2015) The logic of this approach in capital budgeting is to arrive at the overall project value at the end of the project duration. This method also evaluates the project profitability not only by using the cash flows of the project but also the value of the project when considering interest rates, time value of money, inflation, and all other factors that may lead to the change of the value of a single dollar. (AccountingInformationManagement.Org. 2015) NPV is calculated using the following
In relation to methods that are used by consultancies there are both method and Laissez-Faire based approaches. Usually within a client relationship a consultant will be infused into the company in a Laissez-Faire type method in order to tease out the particular nuanced intricacies of underlying issues within these organisations. Once these issues are teased out it is then ultimately down to the methods based approach through a variety of different models in order to solve these issues. The crucial advantages of using a management consultant include the availability of new information, procuring specialist expertise, new perspectives, support for internal arguments, support for gaining resources and facilitating organisational change. I would agree that it is because of these reasons that provide a great amount of credence for the introduction of management consultants to solve certain problems in which the company is facing.
The reason we need a WBS is that it can breakdown even the most complex projects into small manageable tasks. A WBS therefore gives a complete and precise overview of what must be accomplished within each deliverable. Several approaches exist in the creation of a WBS. The most common being using organisational guidelines, analogy, top-down, bottom up and mind-map approach. The approach the project manager uses should be decided on a project-by-project basis.
It is impossible to determine a universal solution for budgeting problems since the budgeting process is influenced by many factors that differ among entities. The paper points out that in theory budgeting is a powerful tool. In practice, however, it is complicated to properly implement and maintain a budgeting system that adequately serves all needs. The previous section highlights two approaches that are used in practice, the “Activity-Based Budgeting Approach” and the “Beyond Budgeting Approach”. While the first approach’s aim is to improve the budgeting process, “Beyond Budgeting” advocates abandoning
Project Cost management is an important key factor which is involved in multi-parts of projects such as planning, budgeting, and controlling so that the project can be finished and completed within the approved budget. The article “Project Cost Management “ which is written by Joseph Phillips shows the cost and how it play role in any projects, then describing the real estimation and its characteristics of the good estimation “no secretes“ to stakeholders at all, then the author describes the most three important types of estimates should be used in any projects such as Ballpark, Budget, and Definitive estimates. After that the author detailed more on the idea of Work Breakdown Structure (WBS). After that the author indicates the result of
The method of budget used is also defined along with the policies for controls of financial accountability and performance used in the organization. Finally, this report describes policies and controls recommended. TABLE OF CONTENTS S.No. Description Page # 1. Cover Page 1 2.
The techniques normally been used for project scheduling, are namely the Gantt chart and critical path method. In the project, the popular primavera (P6.0) software is used as a tool for investigating the current practice of CPM scheduling. proper job monitoring is another aspect that directly contributes