Literature Review: Budgeting As An Effective Budget
Literature review (1000 Words)
Budgeting (200 words)
Budgeting is an essential tool that encourages organizations to plan ahead. Authors such as Shim & Siegel (2009, p.1) define budget as a “formal expression of plan, goals, and objectives” of the management of all operation that is to be achieved in a given time period. While Horngren et al., (2012, p.184) extends the definition of budgeting by indicating that it is “an aid to coordinate what needs to be done” that is needed to exceute the plan. Therefore, budget generally provides direction to the business. By constructing an effective budget, the organizations would be able to “plan ahead” and “exercise control” buy comparing the actuals and what is expected in the budget (Mowen, et al.,
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While Mittal (2010) argues that the production budget depends on the expected sales quaintity in the sales budget.
Direct Labor Budget Budget based on “the number of unit produces and will work from the require output in units, to calculate the various types of labor needed” (Du Toit, 2007, p. 167).
Overhead Budget Also known as “fixed and variable overhead budget ” (Du Toit, 2007, p. 167).
Selling and Administration budget The budget provide expected selling and administration expenses for the given period. Similarly, this budgets also consisted of variable and fixed expenses (Weygandt, et al., 2010).
Budgeted Income statement Provide the projected and anticipated revenues and expenses from the operations during the budgeted period. The profit plan is formulated from the budgeted income ,thereby utilizing resources, time for that budgeted period (Grossman & Livingstone, 2009).
Financial Budgets
Budget prepared in terms of monetary value. Further, this financial budgets ensures planning and financing the operating activities of the organizations (Grossman & Livingstone,
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These percentage rate may derived from the projected inflation rate or consumer price index (Marquis & Huston, 2009). Though it is a simple method of calculation, it requires budgeting experience. However, Doherty, et al. (2014) argues that if current budgets are based on previous year’s budget, incorrect budget of previous would perputuate on the current budget. In comparison, Zero-Based budgeting (ZBB) “avoids the deficiencies of incremental budgeting” (Drury, 2008, p. 376). According to Offical Terminology of CIMA cited in Bhattacharyya (2011, p. 469), ZBB is a method of “budgeting whereby all activities are re-evaluated each time budget is formalated”. Thus, executive who start as Zero budget level every year could justify the costs of the exsisting funtions in contrast to the present and future funtions. This forces departmental manager to prepare budgets. Thus encorages bottom-up approach of
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457 Words | 2 PagesWeek 6 – Resource Management Plan To the WBS that was developed earlier, I had made resource assignments by selecting the right resources in the Gantt chart entry form. This I did by selecting from a drop down in under the resources column, and by selecting more than one resource using a comma to separate them. Post this I printed out the resource sheet, by first viewing the resource sheet. This allowed me to identify resources that are over allocated as they were red in color. Next I printed the Gantt chart and entry table by first selecting the Gantt chart and then selecting the entry table from the more tables’ option.
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758 Words | 4 PagesThrough his provision of the expenses Americans will have to pay, it is made apparent that this inflation will have negative impact on the nation. For example, Kennedy explains through several calculations that Americans’ cash spending has increased rapidly over the past couple of years. He explains, “The industry’s cash dividends have exceeded 600 million dollars in each of the last five years…” (69-71). This evidence support his claim of the inflation of steel prices worsen the spending conditions.
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1770 Words | 8 PagesThe overall budget combines elements such as revenue, operating expenses, assets, and income streams to allow companies to set goals and evaluate their general effectiveness. A departmental budget helps to predict the income and expense of a particular department to achieve its financial goals. A departmental budget allows the company to analyze the costs and expenses associated with a particular department and whether the company's income is sufficient to meet these costs. Moreover, it allows management
Canadian Cancer Society Marketing Strategy
973 Words | 4 PagesThe product in this marketing plan is the service provided by Canadian Cancer Society which is information dissemination and a call to action to all teenage smokers and those who are vulnerable to developing smoking as a habit. The awareness and call to action is the product or service that Canadian Cancer Society is promoting through this immersive media marketing campaign. 12.2 Price There is no financial cost associated with this service that Canadian Cancer Society is providing but the target market will have to utilize resources like time and the effort to create the ads, and to share them with friends and family. They will however have to spend money and give time to come to the ‘Hangout at Victoria’ and the ‘Be Kissable Again’ event.
Beat The Street Essay
1733 Words | 7 PagesStandardizing and Systematizing each of these processes has been a work in progress over the last year, and in some cases, are still under development. Budgeting processes have been a primary concern due to our non-profit status and the need to maximize financial efficiency and impact. Our budgeting processes has been refined by standardizing expenditures (stipends, operational budgets), allocating discrete sums for specific purposes (gear, apparel), and tracking/assigning costs (proper identification of expenses and establishing team accounts to track expenses). Budgeting is an area that has improved and will continue to improve as across the organization as the mentoring programs begin their standardization process. As the budgeting data increases and improves, we will be able to identify expenses which yielded the best results as determined by our agreed upon objective measures, enabling us to make better decisions about how we spend financial resources.
Summary Of Minimum Wage Hurt Low Income Workers By Jame Sherk
646 Words | 3 PagesSherk states the cause of this would be because, from the increase, businesses “always respond to higher cost by economizing,” which is to reduce spending. Once Sherk explains the reasons for his position, he offers the reader evidence to support his claim. To support his claim, Sherk tells the reader that, based on a study, every “10 percent increase would cost 1.2 percent to 1.7 percent of low-income workers their jobs” and would reduce teenage employment by two sevenths percent (Sherk). Also, from the beginning of the recession and the increase, “unemployment among teenagers has risen 6.4 percent to 22.7 percent” and “the unemployment rate for adults without a high school diploma has risen 7.8 percentage points to 15.3 percent” (Sherk). Sherk supports his claim by offering the reader substantial amount of
The Impact Of Hurricane Katrina On Louisiana
182 Words | 1 PagesA market that will be affected in an area hit by a disaster is restaurant meals. Hurricane Katrina hit Louisiana on August 29, 2005. As a result the city experienced massive flooding. “Local business owners and managers were strongly impacted by not just the physical damage of the hurricane and its aftermath but also by the loss of operations while the city was closed” (Corey & Deitch, 2011). People in the affected area will want to buy their food quickly and cheaply at supermarkets, not sit down for a slow, expensive meal.
Advantages And Disadvantages Of Deficit Spending
641 Words | 3 PagesDeficit Spending Norman Harris American Military University 29 January 2017 Deficit Spending Deficit spending is based off the Keynesian ideology of macroeconomics which, in part, believes the government can be used to stimulate the economy. Deficit spending occurs when a government spends more money than what it takes in over a fiscal period, creating or increasing a government debt balance. Government deficits gets it money through the sale of public securities; an example of public securities are government bonds (Roots, nd). Deficit spending is an intentionally calculated plan included in the yearly fiscal budget of the President and Congress to help stimulate the economy (Amadeo, 2016).
California Budget Process
697 Words | 3 PagesWithin the department, the budget process involves the planning and analyzing formation. The department searches and examines the issues occurring and inputs them into the budget. The DDS has included issues of local assistance to regional centers at the department level. The central budget office prepares its initial recommendations to the department level, and later modifies the budget based on the department head’s decision. Central budget office determines and creates estimations based on revenues.
Home Depot Financial Analysis
365 Words | 2 PagesP., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill Irwin. WILLSON, T. (2014). Finding Budget Flexibility - or Not: The Impact of Fixed and Variable Cost.
Harley Davidson Case Study Solution
813 Words | 4 PagesSolution : Introduction: A budget is an estimation of particular commodity, quantity etc. It can be prepared for any number of days but generally it is prepared wither for a year or quarter... A budget may or may not become the actual outcome.
Personnel Budgeting In Business
1639 Words | 7 PagesBudgeting 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.
Tesco Accounting Report
1656 Words | 7 PagesThe main success factors of budgeting process in Tesco are completely based on interpreting objective with the financial measures. However, another success factor is accessibility of resources, which is based on various resources like physical assets of human resources. However, another success factor is communication along with the cooperation of organisational levels related to budgetary process that control by informing the management about the approved budget (Brooks and Mukherjee,
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