Pressure to convey as manager and Harapan team and Fraser (2003) team focus on sales target; order customer orders whether they want or not; and achieve financial goals. There is little time for managers to concentrate on team building; motivation; performance level; assessment; or even time to design effective and productive positions to achieve better results. Therefore, the budgeting process tends to motivate managers to set their goals for financial and achievement purposes rather than working as a team. Hence managers are temporary guards of team members forced to be separated from organizational
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).
Management Summary: Introduction: Planning tools and techniques are used by almost every successful business, the purpose is to keep the business on track and it also helps mangers to assess the condition of the business and act accordingly so that the business meet its goals. Different tools and techniques in which some are basic and some sophisticated are developed during the course of time for helping managers and business to be successful entities. Various techniques and tools are available to plan and control used my managers these include budget, plan, Work Breakdown Structure, Gantt charts, Network Analysis and Resource histogram Etc. Case Study: L plc, a manufacturer of small home electrical products, has enjoyed substantial growth
The purpose of planning is also to minimize the cost of performance and eliminate unproductive efforts. It also helps the management in adopting and adjusting according to the changes that take place in the environment. Planning also provides a basis for teamwork
In the world of business, managerial accounting plays a major role to control a business in an effective method. The management accountants of an organization focuses on the forecasting and decision making of that business. The accountants also help to make business planning, reviewing and analyzing the performance of the business. As an consulting management accountant, the report try to focus on the issues like cost controlling, quality control of the products, reviewing the efficiency of the budget and the in-depth cost that is followed by the business. The report not only try to identifies the problem but also consults the business how to get rid of the problems by using product costing methods and how to acievev an effective and efficient
The estimate should cover all the project phases and activities to take place. All estimates should also account for all people, materials bought, hardware and software. • Achieve a standard budget - The involved board members or sponsor should sign off the projects estimated costs and ensure that the actual costs are accurately done so that the can release the allocated funds for the project. • Create a monthly budget – control the budget by determining the projects monthly expenses based on the knowledge of your resource plan and schedule. Make sure that the monthly budget is documented on a spreadsheet covering the whole project from the initial stage to completion stage.
Further more, assigning cost in process costing is that it allows managers to get detailed information on the production statistics of individual departments or workgroups and it is best suited for continuous manufacturing settings, such as factories and utility companies. The costing process help manager Process costing simplifies record keeping by relying on statistical calculations rather than actual inputs. As an example, consider a construction contractor using a job order costing system. The clothing factory has to keep track of all the cotton, needle, thread and other materials used on the job, as well as tracking workers ' lunch breaks and hours worked. Finally process costing gives managers the advantage of being able to ascertain the same qualities in entire departments and compare performance over time.
Once operations begin, cost accounting reveals how efficiently the work is being done, where the strong and weak spots are, and how to improve performance. The cost of making a product or providing a service is one of the most critical in a firm’s ability to meet the competition. With cost information to support the decisions, management can issue directives, perform follow up activities, and obtain the operating results that ensure prosperity and growth of the enterprise which I will elaborate more on the second question. In the first question, I may or may not have directly or indirectly answered the second question but I will try my best to elaborate on a few key points as to how cost accounting can help organizations develop innovative new products and achieve continuous improvement. Cost accounting can be viewed as the intersection between financial and management accounting.
Ideas of the top management are given the shape of the budget and are passed on the subordinates who are to give them the practical shape. As the activities of various departmental heads are coordinated at the preparation of budget, it is helpful in developing a team work which is very much needed for the very success of an organization. Thus, a budget is necessary to plan for the future, to motivate the staff associated, to coordi9nate the activities of different levels. A budget is an overall blue print of a comprehensive plan of action expressed in physical and financial terms; it includes plan for each of the activity responsibility centers of the business and provides a link between the physical and financial plans of various departments of a company. It is also a document to serve as control for monitoring and review.