Budget Essays

  • Types Of Budget

    793 Words  | 4 Pages

    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

  • Disadvantages Of Flexible Budgets

    869 Words  | 4 Pages

    FLEXIBLE BUDGET A flexible budget, which is also known as variable budget as the name typifies flexes for alteration in the volume of operations and it is calculated using the actual activity level for a particular period (not the budgeted sales) multiplied by the standard cost per unit. It uses the incomes and expenses generated in the recent production as a baseline and measures how the income and expenditures will vary based on the changes in the output. In addition, it is established after a

  • Strengths And Weaknesses Of A Budget

    1416 Words  | 6 Pages

    weaknesses. A critical part of this strategy includes the budgeting process. Many people associate the word budget primarily with limitations on spending. For example, management regularly gives each unit in an organization a spending budget and then expects them to spend within the limits prescribed by the budget. However, budgeting can play a much more important role than simply limiting spending. Budget is a familiar and very important type of short range plan that is expressed in a numerical terms how

  • Essay On Flexible Budget

    1204 Words  | 5 Pages

    Define a flexible budget A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. In other words, it is “a revised master budget based on the actual activity level” (Heisinger & Hoyle, 2012, p. 745). In a given business activity, a flexible budget represents what cost or the cost that should be allocated to a particular activity. So, it is fair to conclude that a flexible budget has the capacity to adjust expenses based on changes in actual revenue or other activities

  • Pros And Cons Of The Federal Budget

    1213 Words  | 5 Pages

    Every year the United States government has to agree on a federal budget for fiscal policy. The federal budget breaks down how and on what the country’s revenue will be spent. The budget is divided into several parts, including military spending, veteran benefits, health and science, education, transportation, etc. The national government sets aside approximately fifty-four percent of the federal revenue for military expenses such as guns, tanks, ammunition, etc. These expenses do not include the

  • Advantages And Disadvantages Of Budget In Government

    1486 Words  | 6 Pages

    Budget is a most essential process for any government in administrating the organisation to achieve the objectives that has been set out in the manifesto. Therefore in order to achieve those objectives, government need to have an adequate supply of money and spend it efficiently (Bissessar, 2010). Budget is a tools that tell the organisation how much to spend, where to spend and when to allocate resources which are always in scarce. A better managed budget will lead to a better quality of life and

  • Nestle Budget Analysis

    1424 Words  | 6 Pages

    Management accounting involves forecasting and controlling budgets as it provides income for the achievement and performance of certain projects or business activities of Nestle. Budgeting is a detailed plan expressed in measurable terms that specifies how resources will be acquired and used during a specified period of time. It is vital to an organization as it allows them to have authority or control on their financial resources to balance out their expenditures to spend with their income. It also

  • Budget Planning Research Paper

    1106 Words  | 5 Pages

    Budget planning the Republic of Moldova The budget process in Moldova is regulated by Law no. 847 of 24.05.1996 on budget system and budget process and represents a number of “successive stages of development, approval, execution and reporting of budget execution”. These stages constitute a “decision-making, democratic, political predominantly, continuous cyclical and with broad public impact process at macro and micro level, which manifests itself both economically and socially”. In Moldova,

  • Literature Review: Budgeting As An Effective Budget

    1269 Words  | 6 Pages

    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

  • Budget Vs Zero-Based Budgeting

    1197 Words  | 5 Pages

    Planning programming and budgeting, zero-based budgeting and target-based budgeting are variations of performance budgeting. These formats are projected to improve the policy decision-making situation and rational analysis. Budget officials would focus on the major policy instead of insignificant and time-consuming issues using these formats. The development PPB experienced some success and failure. It is an attempt for government to institutionalize analysis into the public budgeting process. However

  • Master Budget Research Paper

    3334 Words  | 14 Pages

    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

  • Factors Influencing Budgeting

    3993 Words  | 16 Pages

    The type of employment contract an employee receives influences his behavior and performance. Companies frequently use budget-based contracts, where the final compensation is linked to whether the employee attains a budget goal. In some contracts, there is additional compensation when the budget goal is outperformed. There has been a lot of prior research about the influence of budget-based contracts, both on individual and on group performance. Bonner, Hastie, Sprinkle & Young, (2000) review several

  • Advantages And Disadvantages Of Budgetary Control

    1941 Words  | 8 Pages

    The word “budget” is derived from an old French word “bougette”, which means purse. It is defined as “the quantitative expression of a plan of action and an aid to the coordination and implementation of the plan. These days, budget is essentially used in almost every organization as an aid of measurements when setting the organization’s objectives and targets, and its use has allowed managers to bring about the objectives of the business in quantitative terms, usually on an annual basis, with a financial

  • The Importance Of Strategic Budgeting

    706 Words  | 3 Pages

    A budget may be a set of interlinked plans that quantitatively describe AN entity\'s projected future operations. A budget is employed as a yardstick against that to live actual in operation results, for the allocation of funding, and as an idea for future operations. The budgeting method usually begins with a method designing session by senior management. The management team then applies the united strategic direction to a series of plans that roll up into a master budget. The plans embody a sales

  • The Importance Of Budgeting

    1088 Words  | 5 Pages

    What is a Budget? Nowadays, it is almost impossible for all people to be successful without planning their budget beforehand. Budget can seem simply summary of incomes and expenses for typical households. However, it is one of the key factors for business companies to invest time to create and manage budget in order to prepare right business plans and monitor performance precisely. Maintaining financial plans enable business companies to control their cash flows and make right decisions in tough

  • Functions Of Budgeting

    995 Words  | 4 Pages

    Budget A budget is a plan for a person or company expenditures. Budget involves looking at ones revenue or income and matching that to expenses such that the person or company pays for all necessary expenses. Budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues quantities, cost and expenses, assets, liabilities and cash flow. In the business unit it expresses strategic plans of organisation activity or events in measurable terms

  • Oman Airport Management Company Case Study

    1251 Words  | 6 Pages

    Why controlling budget cost in Oman Airport Management Company (OAMC) is good and why is bad for the business? In many cases, the company choose to implement cost control measures. These procedures take many forms but generally will place restrictions on how much money employees can spend, and keeping them to strict limits. In addition to reducing the amount of money, OAMC’s is used on the external expenses, these controls have a number of additional benefits and downsides such as; Advantages

  • Advantages And Disadvantages Of Activity Based Budgeting

    828 Words  | 4 Pages

    economic and efficient allocation of resources it takes to implement ZBB. Zimpapers uses incremental budgeting, assesses the budget from the previous years and modifies it upwards or downwards. (Mahler, 2016), says describes ZBB as a “straightforward, intuitively simple way to aggressively strip out costs that cannot be rationally justified.” ZBB results in more accountability and more detail making it unpopular with the work force. It helps with efficient resource allocation and excludes unproductive

  • Advantages Of Budgeting

    1749 Words  | 7 Pages

    Budgeting is a process to plan budget which is used to describe fiscal expectation, expenditure and future planning of an individual, organization or government within a given period of time (Olawale, et al. 2012). Up until now, there are many methods of budgeting for governments such as traditional (line item) budgeting, zero-based budgeting, and performance based budgeting (PBB). Due to its simplicity, the traditional budgeting which listed groups of expenditure using last year’s data such as office

  • Literature Review Internal Control

    3305 Words  | 14 Pages

    targets. So, internal control helps to control our future budget. The major objective of the literature review is to assure that internal control is the central element in managing the organization. Therefore, the goal of this study is to comprehend internal control and its impact on the organization. The study will include themes about internal control system, internal control evaluation, internal control over the financial system and the budget affected through internal control, and finally the conclusion