Similarly, if a department realizes that it has some unused resources within a stipulated period, then the managers can look for ways of spending the resources until the accounts read zero. This is a direct converse to the zero based budgeting. In the zero based budgeting, the budgetary allocation for each department is based on the existing operations and the usefulness of the department to the company in question. That is to say the budgetary allocation is not based on the previous
Being a successful person will help you to know more new friends which will help you to think more widely. Saving money might save you from many serious. Many people are facing problems almost each day of their life, these problems might only be solved with money, so you will be very thankful that you saved money. Saving money doesn’t necessary needs an adult person gets a high salary. The young people also can save money each moth even it does not worth it but one day it will be a high amount of money.
Because they are useless. Three reasons why they are useless is because, it's more convenient to use paper money, now and days there is nothing you can buy with a few pennies, and last they cost more than they are worth. To start off, if you were put in the situation where you bought a few items from the grocery store and your total came out to be $11.16 cents. Would it be easier to hand the cashier a ten dollar bill and a one dollar bill.
They originated the modern theory of capital structure with an article in The American Economic Review. In Famous MM theorem, the Modigliani and Miller (1958) stated that the value of a firm is irrelevant of how the company finance their operation if there is efficient market means no taxes, bankruptcy cost, agency cost, and asymmetric information financing. The Theories of capital structure roughly starts with the Miller and Modigliani theorem. Modigliani and Miller (1958) further modify its theorem in 1963 because the capital structure of none of the economy is perfect. In 1963 a follow up paper is published by MM in which they relaxed the assumption of no taxes.
These features are quite independent from the other cost drivers. Michael Porter (2004, p. 81) stated that “the policy choices that tend to have the greatest impact on cost include product configuration and performance, mix and variety of products offered, spending rate on marketing and technology development activities, delivery time, buyers served (small vs. large), channels employed (few efficient dealers vs. many smaller ones), process technology chosen, the specifications of raw materials or other purchased purchased inputs used, wages paid and amenities provided to employees, human resource policies involving employee training and motivation and procedures for scheduling production, maintenance, the sales force and other activities”. Policies play an essential role in determining cost. Cost analysis has to be aimed at divulging the impact of policies on value activities. While many firms are aware of their explicit discretionary policies, they remain blissfully ignorant of the implicit ones.
9.2. Marginal costing Marginal costing (sometimes also called direct or variable costing) is costing technique, under which only variable (i.e. marginal) production costs are charged to the product costs. It is not accepted under IFRS or US GAAP, but it is important for decision-making as it highlights only the changes of costs that result from certain decision. Costs of the product/service under marginal costing method include ONLY variable production costs.
To a profit organization, the aim of budgeting is to maximize profit and minimize cost. However, for a non- profit organization, budgeting is the most important because it allocates resources under limited resources. For this reason, there is a method, Zero based budgeting, can be applied at non-profit organization. Background of ZBB Zero based budgeting (ZBB), another name is priority based budgeting. It means that superiors need to justify expenditure and start from zero.
Congress transformed Fannie Mae into a company in 1968. Instead of using tax dollars to fund it, it sold stocks to shareholders in an Initial Public Offering (IPO). Besides, Congress needed the funding to finance the Vietnam War. Freddie Mac Now Federal Home Loan Mortgage Corporation
Individuals dealing with human resource matters face a multitude of challenges, ranging from a constantly changing work force to the ever present scores of government regulations and a major technological revolution. Furthermore, global competition has caused organizations both large and small to be more conscious of cost and productivity. Because of the critical nature of human resource issues, these matters are receiving major attention from upper management. (D. Johns& Radebaugh, 2006) As organizations vary in size, aims, functions, complexity, construction, the physical nature of their product, and appeal as employers, so do the contributions of human resource management. But, in most the ultimate aim of the function is to: "ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs", that is, neither overstaffed nor understaffed in total or in respect
PBP is calculated, by taking the total cost of the project and dividing it by expected cash inflows received each year; providing the total number of years taken to repay the investment, a shorter PBP equates to a higher return on the capital investment. Usually, this aspect of timing is performed with a maximum payback period, thereby only projects which meet the requirement are considered. The advantages: The PBP method holds popularity with business analyst for several reasons. First is its simplicity, for its an easily understood concept to teach within an organisation of varying backgrounds. It identifies projects that provide the fastest return on investments, which holds importance for organisations which have limited capital and would need high recovery rate, specifically within SME’s.