Budget Definition:
An estimation of the revenue and expenses over a specified future period of time. A budget can be made for a person, family, group of people, business, government, country, multinational organization or just about anything else that makes and spends money. A budget is a microeconomic concept that shows the tradeoff made when one good is exchanged for another.
A surplus budget means profits are anticipated, while a balanced budget means that revenues are expected to equal expenses. A deficit budget means expenses will exceed revenues. Budgets are usually compiled and re-evaluated on a periodic basis. Adjustments are made to budgets based on the goals of the budgeting organization. In some cases, budget makers are happy to
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The most common types of operating budgets are expense, revenue, and profit budgets.
Expense Budget
An expense budget is an operating budget that documents expected expenses during the budget period. Three different kinds of expenses normally are evaluated in the expense budget - fixed, variable and discretionary (Discretionary expenses - costs that depend on managerial judgment because they cannot be determined with certainty, for example: legal fees, accounting fees and R&D expenses).
Revenue
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Three important financial budgets are the cash budget, capital expenditure budget and the balance sheet budget.
Cash budget
Cash budgets are forecasts of how much cash the organization has on hand and how much it will need to meet expenses. The cash budget helps managers determine whether they will have adequate amounts of cash to handle required disbursements when necessary, when there will be excess cash that needs to be invested, and when cash flows deviate from budgeted amounts.
Capital Expenditure Budget
Capital Expenditure Budgets. Investment in property, buildings and major equipment are called capital expenditure. Such capital expenditure budgets allow management to forecast capital requirements, to on top of important capital projects, and to ensure the adequate cash is available to meet these expenditures as they come due.
The balance sheet budget
The balance sheet budget plans the amount of assets and liabilities for the end of the time period under considerations. A balance sheet budget is also known as a pro forma (projected) balance sheet. Analysis of the balance sheet budget may suggest problems or opportunities that will require managers to alter some of the other
There was tax deductions to canadian advertisers and attracted valuable revenue and brought in implications in the development of the canadian magazine industry. (96
Within 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.
Balanced-budget meaning that cities almost always plan to have a zero balance at the end of the year while rainy day budget has a surplus on a budget that can be used to other general fund expenditures at the end of the budget year. The city of Calma was using rainy day budget before 2014. Its surplus budget used in the employee benefits fund. The goal of the rainy day budget has been to replenish annually to reach 5 percent of general fund expenditures. It has a positive consequence because the City will make expenditures based on their collection.
Ensure that the property, plant and equipment exist and are genuine assets of the business and are beneficially owned by the business and any restrictions, pledges or liens on the property, plant and equipment are identified and adequately disclosed in the financial statements. At the same time, have to prepare fixed assets schedule as to attachment for this section. Test the mathematical accuracy, agree opening balances to prior period working papers and agree closing balances to the nominal ledger and investment ledger where maintained. Vouch against invoices, contract notes, and agreements for any additions or disposals in order to ensure that all property, plant and equipment are included in the balance sheet and gains or losses on realization of property, plant and equipment are correctly stated. In additions, ensure the property, plant and equipment are properly disclosed and
Child Care Center is a business. Not only you must know grow and development of the child, but you must also know how to keep the business financially viable. To do so, Tameka needs to know why the Effective financial management practices are important to run a child care center. Also, how to maintain a financial management system that includes budget, management of revenue and expenses. A)
P., 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.
When spending exceeds income, the result is a budget deficit, which must be financed by borrowing money and paying interest on the borrowed funds, much like an individual spending more than he can afford and carrying a balance on a credit card. A balanced budget occurs when spending equals income. The U.S. government has only had a budget surplus in a few years since 1950. The Clinton administration (1993-2001) famously cured a large budget deficit and created a surplus in the late
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.
Revenue management is a scientific method that helps firms to improve profitability of their business. For many years, firms use revenue management to predict demand, to replenish inventory, and to set the product price. The benefit of revenue management can be found in a variety of industries, including airlines, hotels, and electric utilities. Dynamic pricing is a popular method of revenue management, especially when a firm needs to sell a given stock by a deadline. The goal of dynamic pricing is to increase the revenue by discriminating customers who arrive at different times.
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.
Introduction Keeping record of activities and expenditures is crucial in personal finance planning and could really help in managing personal finances. This paper identify what is accounting and how does it help to manage personal finance, describes products of accounting and bookkeeping procedures that are useful in personal financial planning and how personal financial software could assist in personal financial decisions. What is accounting and how does it help you manage your personal finances?
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.
How to feed a family on a budget. Feeding a family on the budget has become hard for the low-income family. People’s conception of healthy food is expensive. Feeding a family on a budget has helped people to pay the loan and invest surplus income to another reason. But with a smart shopping strategy and research, the family budget has reduced to a substantial amount.
Although its sales and revenue have been increasing, it has not offset its increased operational costs. In 2015, "revenue climbed 22% year over year to $455.5 million...in spite of a shift in the sports calendar versus the year-ago period, resulting in one less week of football and fewer pay-per-view events to draw in diners"
1- Investment decision 2- Financing decision, 3- Assets Management decision.