b) To compel planning
Budgeting makes sure that managers plan for the future, producing detailed plans in order to ensure the implementation of the company’s long term plan. Budgeting makes managers look at the year ahead and consider the changes in conditions that might take place and how to respond to those changes in conditions.
c) – To co-ordinate activities
Budgeting is a method of bringing together the activities of all the different departments into a common plan. If an advertising campaign is due to take place in a company in three months’ time, for example, it is important that the production department know about the expected increase in sales so that they can scale up production accordingly. Each different department may have its
…show more content…
The budget helps to work out how these objectives can be achieved.)
k) Discuss the concept of a participative style of budgeting in terms of the six objectives identified in part ((marks)
Participative budgeting is a budgeting process under which those people impacted by a budget are actively involved in the budget creation process.
It refers to a budgeting process where there is some level of involvement from subordinates within the organisation, rather than budgets just being set by the top level of management.
Concept of a participative style of budgeting in terms of the objectives identified in part (a) above
– To compel planning
Participative budgeting will compel planning. Although participation can take many forms, often it will take the form of bottom-up budgeting, whereby the participation starts at the lowest level of management and goes all the way up to the top. If this is the case, then planning is taking place at many levels, and should be more accurate than if it simply takes place at a high level, by individuals who are not familiar with the day to day needs of the business.
– To co-ordinate
…show more content…
This is because, not only does there need to be co-ordination between departments but there also has to be co-ordination between the different levels of management within each department. The process should be cumbersome but also effective, with everyone knowing exactly what the plan is.
– To communicate activities
Communication will be particularly effective with participative budgeting, although how effective depends on the extent of the participation. If all levels of management are involved, from the bottom up, then all levels of management know what the plan is. However, the plan may change as different departments’ budgets are reviewed together and the overall budgeted profit compared to the top level management’s expectations. Hence, it may be the case that those people involved in the initial budgets, i.e. lower level management, have to deal with their budgets being changed.
– To motivate managers to perform well
If managers play a part in setting the budget, they are more likely to think that the figures included in them are realistic. Therefore, they are more likely to try their best to achieve them. However, it may be that managers have built budgetary slack into their budgets, in an attempt to make themselves look good. Therefore, managers could end up performing less well than they would do had tougher targets been set by their
Usually, budgeting is based on tangible cost of products purchased but during this project the main costing was based on man hours. Even the cost benefit analysis of the project was based on man hours involved in the current implementation versus what it would be with the new system in place. - Formative and Summative Assessment – Quality Assurance was a new concept that I learned is critical to the successful implementation of the project. I was not entirely satisfied with this part of the project because there is always scope for more quality control measures but the project was limited by time and cost. For example, peer reviews of code could have help bring up the quality of the coding practices of developers but there was no time to implement that in this project.
The budget will be positive for the growth of the organization. Hence, it is possible to accelerate the finalization of the budget plan for direct application to business, resulting in faster profits (VAIDYA,
M3 In this task am going to justify the decision, in our business we decide to hire an advertising agent that could help us promote our product, also we decide to use different media that could help us to find our target and to increase more customers in our brand, also through marketing mix this could also help us to maintain our campaign so that we could be able to manage and conduct our campaign effectively. The following are some ways that could help us to improve our campaign. Budget Through increase our budget this will help us to conduct our campaign more effectively such we could be able to improve our advertisement so that we could attract more customers in our company, also through budget we could be able to hire advertising agencies that could help us to promote our business and through budget we could be able to conduct different events that could help us to promote our product to our target
Standardizing 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.
Entitlement spending refers to the funds used to provide Social Security, Medicare, Medicaid, and other welfare programs (Heritage Foundation, 2010). Over 20% of federal spending is spent on these types of programs and this number is expected to grow if reforms are not made (Heritage Foundation, 2010). According to the Heritage Foundation (2010), the main reason why entitlement spending must be checked on is because of its uncontrollable costs. There are different types of budget formats, but the purpose of all budget formats is to measure and permit accountability for performance or lack of performance in government (Lynch & Smith, 2004). For this reason, budgets include specific objectives, income and expenses for specific departments or
They prepare the city’s budget, and after approved by legislature, the central budget office becomes the control (Lynch & Smith, 2008). As the budget process is being formulated and executed in these stages, both departments together, support their combined recommendations to other departments such as the chief executive and legislative policy makers. Political leaders, such as the governor, begin using the budget’s information to execute their goals in either publicizing their approval in funding or reducing programs and activities. All departments hold leverage over one another until the final stages of the budget process. This is mainly because of revenue and expenditures documented with major decisions to allocate funds accordingly in the best form of
Advertising must be strategic as well as creative.
Advertising, sales organization, and product design
Solution : 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.
Q1. Describe the org structure at Great Wall Golf & Country Club. How does the decision-making control affect Wee’s plan? Answer
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.
The 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,
Introduction to Budgets and Preparing the Master Budget Budgets and the Organization Many people associate the word budget primarily with limitations on spending. For example, management often gives each unit in an organization a spending budget and then expects them to slay within the limits prescribed by the budget. However, budgeting can play a much more important role than simply limiting spending. Budgeting moves planning to the forefront of the manager's mind. Well-managed organizations make budgeting an integral part of the formulation and execution of their strategy.
I have two assistant for this assignment. I need to give some more hard effort. I am presenting to my products in the market at detail version which can help to get the customers attention on our products. If I can get the full attention on my products, the sales automatically increase at a higher rate.
Managerial This research will help managers to know importance of advertising tools. We will discuss importance of research as follows. • Managers will come to know about the importance of advertisement tools like facebook advertising and television commercials. • Managers can achieve their promotional objectives through effective utilization of advertising tools.