Budgeting is a crucial aspect of any institution or government’s operations with an aim of enhancing goals and objectives’ achievement in line with specific environment and needs. Thus, budgeting is greatly guided by policies that define the suitable actions in line with set goals and objectives either in response to changing environment or as a way of fostering opportunities’ utilization. In that respect, governments have budgeting planning that is specific to their constituents’ needs and that defines the objective of this analysis which seeks to demonstrate the budgeting process for a State in view of its status and Continue reading...
Essays on Budgeting
Budgeting Db1 Essay Sample
For RTWMTC, budgeting is important since it will allow the company to plan its expenditures. It will allow for a balance between the capital and recurrent expenditures. This will ensure that the company maintains growth in a balanced manner hence avoiding illiquidity or insolvency. The other reason is that the budget will allow this company to manage its financial information and also review it on a real time basis. This will be achieved by maintaining an automated budgeting system which will ensure that the company makes timely and right expenditure decisions (Besley & Brigham, 2008). Thirdly, it is a means Continue reading...
Pitfalls On Capital Budgeting Practices Report Examples
Management of Working Capital Case Study: George's Trains
Actionable information on the future and current cash flow, working capital, and capital budgeting are what managers in both small and big businesses work hard to obtain in their daily activities. Working capital is can be used to measure up the liquidity of the operations of the business (Sullivan 2010). It is usually the current assets subtracted from the current liabilities. Managers are normally concerned about working capital and would always seek the best practices to achieve a better working capital management. This report tries analyses the case study of George’s train business with an aim Continue reading...
Budgeting Essays Example
Budgets are a major part of management, designed to ensure efficiency in resource use. Behavioral aspects in budgeting are crucial to the success of the budgeting process. Budgeting highly impacts human behavior .i.e. motivation and dysfunctional behavior. Since individuals react to budgeting demands differently, their behavior may damage the budgeting process. Behavioral problems linked to management styles include dysfunctional behavior and budget slack. Budgeting is a form of communicating organization’s goals to the managers. Therefore, budget managers develop attitudes that maintain cooperative relations with staff.
Budgeting involves two behavioral aspects. On one hand, is the authoritative approach adopted Continue reading...
Free Tvm Applications Essay Example
Time Value of Money is an important concept in the world of finance. As per the principle, the value of money received today is more than the same amount of money to be received in some future date. In other words, as per the principle of Time Value of Money, money carries the power to earn interest. Thus, any amount of money is worth more the sooner it is received. For Instance, $100 invested at 10% rate of interest for 1 year will be $110 after the end of year. Similarly, if $100 is received after 1 year, this Continue reading...
Free Return Methods Essay Sample
Criticisms of Payback and Simple Rate of Return Methods
Payback Period and Simple Rate of Return Methods are among the tools used in capital budget budgeting. Payback period measures the length of time to recoup an investment, while the simple rate of return method, also known as Accounting Rate of Return (ARR) provides the expected income for the entire life of a capital investment (Investopedia, 2014).
The formulas to calculate for these two methods are:
- Payback Period = Cost of Project / Annual Cash Inflows
Criterion: The project that has shorter payback period is deemed better.
- Simple Rate of Return= Average profit /Initial investment
Criterion: Choose the project with higher returns or exceeds the hurdle rate.
Although considered as the simplest method in appraising capital investments, one of the criticisms with the payback period method is it ignores benefits Continue reading...
Free Finance Essay Sample
Planning stage of any business plays an important role in the progress and profitability of business. Business forecasting means that to predict or access the outcomes or the performance of the business in coming future or the coming accounting period. To maximize the profitability of the business, it is very important for the management of the business to predict the outcomes, both certain and uncertain, to maximize the profitability of the business. Therefore, in these circumstances, management of the business uses probabilities or expected values of expenses and revenues and creates budgets on the basis of forecasting. The Continue reading...
Example Of Capital Budgeting Techniques Essay
The process through which the companies authorize the spending of capital on the long-term projects is known as the Capital budgeting. Capital projects require careful evaluation due to the limited availability of capital. There are many different techniques for capital budgeting but the most significant ones are the NPV and the IRR. The Net Present Value (NPV) is the method that determines the project worthiness by taking into consideration the devaluation of the money with time. Internal Rate of Return is that rate which is determined by the investor on a particular risk to forecast a profit (Arnold & Nixon Continue reading...
Free Essay On Name
- Describe the basic Public Budgeting System outlined by the instructor in class. Be sure your outline details how information, justification, and examination all play an important role in the development of a public budget.
Public Budgeting System involves, defining the goals that are aimed to be achieved through the process, and allocating the necessary resources to achieve those goals. It is an act of balancing the fund allocation among various public sector needs, and deciding how much to spend on each such programs.
The crucial first phase of the budgeting process is the gathering of information. The information Continue reading...
Example Of The Causes And Effects Of Maintaining A Good Personal Budget In Essay
All Aspects of Life
Budgeting is a word most often heard referring to maintaining a healthy balance between paying bills and purchasing necessities and spending money on things not necessarily needed to survive. Financially speaking, most people make out a budget either in their heads or on paper that lists out the bills they need to pay in order to maintain their current lifestyle, such as rent, heat, car payment, insurance, credit cards, etc. And then there are percentages of income factored into savings and another percentage as frivolous cash; money to spend as extra perks in one’s day. Maintaining a healthy Continue reading...
Finance: What I Learned Essays Example
Roles and goals of budgeting: I was inspired by the ideas of budgeting expressed in the course. The concept made me realize that for any kind of financial planning, the importance of budgeting cannot be ignored. The role of budgeting is so important that a financial venture without proper budgeting may fail in achieving its goals. Therefore, proper budgeting is highly required. Furthermore, it must be observed that if the actual budget has exceeded the expected budget what were the reasons that caused this to happen?
Identification of variances: In any financial venture, there are always pre-determined standards that Continue reading...
Free Leadership And Ethics Essay Sample
Ethics are the values, principles, and beliefs that describe the right and wrong behavior and leadership can defined as the process of inspiring people to achieve goals. Therefore, the ethical leadership can be defined as the process of influencing employees, colleagues, or others through their values, beliefs, and principles that are termed as the right behavior .
The organization may face challenges due to ethical issues in budgeting process. Budgeting can be defined as the process in which the company allocates financial resources to different department of the company. Decisions are usually made are based on values and priorities and Continue reading...
Free The Traditional Budget Making And Its Relevance In Practice Essay Example
Traditional budget making has been playing an important role in the business environment since the dawn of 1900 and is considered to be one of the major evaluators and key drivers of managerial performance in every organisation. It also plays a critical part in the designing as well as implementation elements that affect the organisation wide planning and control.
Traditional budget making is the most powerful tool which has been in use for management control as it plays an essential role in the organisation’s corporate politics. It can also increase the authority and power of the senior or Continue reading...
Example Of Essay On Budgeting Basics And Beyond (Employee Perspective)
For any budgeting plan or mandate to work, there has to be coordination. This means that the upper budgeting department management should be able to keep track of all the ins and outs of money to and from the company’s treasury. This means that even the smallest expenses should be counted, listed, and audited if the company does not want to unnecessarily and unproductively lose any money.
As an employee, the most important thing I would look for when it comes to budgeting would be coordination. So, given the chance to create and submit my own budget proposals Continue reading...
Good Budgeting Basics And Beyond Essay Example
Being a budget manager or a budget officer of a medium-sized property management firm can be a real challenge because there are simply a lot of things to consider. According to Shim and Siegel (2009), “the first step in creating budget is to determine the overall or strategic goals and strategies of the business, which are then translated into specific long term goals, annual budgets, and operating plans” . If there will be a particular aspect of budget management that I want my property managers and budgeting staff (assuming that I have been appointed as the General Manager of a Continue reading...
Personnel Expenses With Negative Variance Essays Example
According to the statement of operations provided, personnel expenses that have a negative variance were managerial/professional personnel expenses that had a negative variance of $750 that resulted from actual expenses of $ 8500 against a budgeted amount of $7750. Net salaries and wages had a negative variance of $550 due to budgeted and actual amounts of $9750 and $10300 respectively. Benefits had a negative variance of $200 from budgeted expenses and actual expenses of $1200 and $1400 respectively.
Possible Causes of Negative Variances and Proposed Solutions
One possible cause of negative variance is under-budgeting. This means that planned amounts for use were lower than the expenses. This would Continue reading...
Return On Investment Essay Examples
Every person is born with a different mindset and thinking in this world, and on the basis of this mindset and thinking, they will take different aspects accordingly. On the basis of the mindset, an individual will select a desired career for them. The clearest intentions behind selecting and addressing a particular career depends upon the fact that how much future benefit it will give or arise for the individual in particular (Peterson, Fabozzi & Habegger, 2004). The aspect of return on Investment (ROI) is the most important aspect that strides under the analysis of development or pursuing a career. Continue reading...
Good Example Of Essay On Respond
I like the way you have structured your essay. It is very simple yet very concise. I agree with you that decisions on teacher’s credentials and their placement on different classes should be made during staff meetings. I am also in agreement with the proposal that fundraisers be used to provide materials and supplies to the Physical Education program. Parents want their kids to participate in physical education and, therefore, your suggestion that the support of parents be sought after is also very viable. They might even be willing to pay for the entire program. As you have Continue reading...
Good Example Of Research Paper On Healthcare Budgets And Management
The Budget-Building Process
Several steps are involved in this process. The first step is identifying the goals for budgeting. It is important to involve all departmental heads at this stage as they overview the developmental goals for the individual departments. The second step involves a review of the financial status of the organization. This involves a review of balance sheets, previous tax returns, income statements, cash projection and flow, outstanding debts, assets and liabilities. These give an idea of where the current budget starts. The third step involves defining costs. The costs in this step are those associated with the goals identified Continue reading...
Good Example Of Critical Thinking On Material Supply Budget Granston City
A budget is a complete, formal arrangement that gauges the conceivable uses of funds for the association over a particular period. Budgeting depicts the general methodology of getting ready and utilizing a budget. Since budgets are such significant devices for arranging and control of funds, budgeting influences almost every kind of association from governments and substantial organizations to little organizations and families and people. A little business and large participates in budgeting to focus the most productive and compelling methods for profiting and extending its benefits base. Budgeting can help an organization utilize its restricted budgetary and human assets Continue reading...
Example Of Essay On Policing In Kelsey: Budget Report
Kelsey does face new budgetary challenges. That the federal government has reduced the federal pass-through money at a time when crime in the state is increasing and there is need to revamp the state’s police force and infrastructure does not help. But most importantly, the conflict of interests on this matter might make it even harder to arrive at a conclusion that helps the state. This paper discusses the various elements of Kelsey’s budgeting process under the circumstances mentioned: ethical issues; changes to the budgeting cycle (preparation, execution and evaluation); new budgeting approach and it addresses the Continue reading...
Free New Management Accounting Techniques Research Paper Example
A recent research on management accounting culture change established how accounting practices are woven into the cultural fabric of any organization. The study adopted and explored theories of a series of cultural change interventions related to management accounting. The traditional accounting methods involved process costing, standard costing and job-order costing. The evolution of business environment was considered efficient because of its role in the accounting techniques. The new methods labeled as advanced management techniques were considered to provide tools of achieving a competitive edge. They include Kaizen costing, activity-based costing, value-added accounting, cost of quality, strategic management accounting and Continue reading...
Free Essay About Health Care Budget
- 2010 Budget and assumptions
Budgets are useful planning tools that act as a guide to an organization’s operations as well as an evaluation benchmark for the operations’ progress. In that view, Patton-Fuller Hospital’s budget for the year 2010 is shown as follows.
The 2010 budget projections show that the hospital’s total revenue is expected to increase by 3%. On the other hand, the total expenses are projected to increase by 1.28%. Thus, the overall performance is projected to improve from the 2009 projected loss of $373,000 to a profit of $8,015,000 in Continue reading...
Free Budgets And Budgeting Process Essay Sample
Importance of budgets
For the effective operations of the company, the budgeting process is considered a prerequisite. It is a detailed plan to evaluate the incomes and expenses of a business in the forthcoming period. A budget provides a realistic outlay for the expected earnings and spending pattern of the business which facilitates the planning and control function of the management. Through this activity, a company can segregate the total outlay for each business function and this can save precious time of the management on planning the capital resource management for each activity. The major benefit of making a budget is an Continue reading...
Sample Essay On Budgets And The Budgeting Process
Importance of Budgets and the Budget Process
Budgeting is a planning process that involves laying out predetermined ways of spending either personal or organizational funds. Budgeting arises from the need to allocate funds in a logical manner taking into consideration that there always exists unlimited wants and limited resources. The budgeting process is closely linked to the creation of a scale of preferences of the various ways in which funds can be utilized. Therefore, budgeting helps in ensuring that the basic needs are addressed prior to misappropriation of funds on less important costs. Budgeting helps to address the issue of urgency in meeting various costs that Continue reading...
Research Paper On Policy Implications On Performance Based Budgeting
The Economist (2010) in one of their issues pointed out ‘there is a need for a reinforced central government model, different from any authoritarian or imperative model of the past.’ The global economic crisis revealed to the world that not only markets are subject to downturns, but also public sector. In times of instability government represents the last resort of confidence for its nation. People want to believe that no matter what happens outside of the administrative walls, the political system is solid. Still, the financial crisis did significantly affect public sector as budgets were cut out. It caused Continue reading...
Free Essay On Financial Management
A company is considering two projects, Project A and Project B with different cash flows as disclosed in the table hereunder:
However, since the company has a limited budget, it can only invest in one of the project. Thus, the managers of the company take the help of capital budgeting techniques, NPV analysis and Payback Period.
The NPV is the sum of the present values of all the expected incremental cash flows if a project is undertaken. The discount rate used is the firm’s cost of capital, adjusted for the risk level of the project. In other words, Continue reading...
Budgeting Financial Goals Term Paper Samples
Overspending occurs when one uses savings and build up debts. Planning personal budget helps to solve such cases and controlling use of funds. It requires personal discipline as the amount saved and what they are intended to purchase to be fulfilled. Budgeting helps to answer the question of whether one can afford what is spending or intending to do. It helps in decision making in regard of time in comparison with income, saving and cost of the product. One gets to understand spending and prioritizing making stick to the goal or the objective of saving.
There is a technique Continue reading...
Current Issue Analysis Essay Example
Proper budgeting and analyzing of finances is essential in ensuring the success of projects. Institutions, in most cases, tend to face many problems and challenges in their financial management. Misappropriation of funds is likely to lead to financial gaps since the intended purpose will not be met. This will eventually lead to the activities of the institution being paralyzed, affecting the institution negatively. Budgeting is a crucial element of accounting in that it gives institutions guidelines on how to use the available resources effectively without experiencing shortages. In the modern time, however, some trends, challenges and dilemmas are faced Continue reading...
Free Finance Essay Sample
Budgeting DB 2
Budgeting DB 2
The quantitative or financial plan for the coming period of the business is called the budgeting of the business. The budget plays an important role in the planning of funds allocation, responsibility accounting, and motivation of the employees and the control of the business. On the other hand the forecasting is the judgement or estimates made by the management of the business for the coming period. In forecasting the management utilizes the probability, trends and the previous outcomes of the business to estimate the future outcomes of the business. (Ashe-Edmunds)
Cash budgets are the best way Continue reading...
Free Budgeting (Ind 2) Essay Sample
About the company
The budget presentation
Budget and its Importance. Before presenting the different types of budget, it is important to establish first what a budget is and why is it important for the company. A budget is a financial translation of the company’s plan. It includes the annual target for sales and estimated expenses to meet the target. While creating a budget can be tedious, it is a critical management process due to its primary benefits: (1) It serves as a guidance to all employees on what is the financial expectation in each department to achieve overall Continue reading...
Good Budgeting IP 3 Essay Example
Budgeting; I Can Business Incorporated (ICBI)
Financial reporting system
Financial reporting system is the organizational management processes and the procedures that exercise financial control and accountability. They ensure recording, verification and reporting in time for the results in the transaction. This is concerned to the revenue, expenditure, assets and the liability of the organization.
Components of financial reporting
There are several components of the financial reporting systems. They are categorized in the manner they can be assessed. This is whether in the reporting studio or the workspace. The both can also access some of the components. To start with, the first component is a book editor. This is assessed Continue reading...
Free Marketing L10 Essay Example
A properly budgeted for advertising is imperative for both new products and even the already existing products. There are factors making it difficult to come up with accurate advertising budget. This project highlights key factors that affect advertising budgeting (Cliche, 2012). Among other things discussed is, the importance of advertising media and creative department working together, and the place of public relation in marketing.
Advertisement budgeting is crucial for business as it increases the level of sales, which translates to higher revenues. However, management team usually finds it difficult to come up with advertisement budget due to a number Continue reading...
Thesis On Causes Of Not Keeping Personal Budgets
Introduction to Personal Budgeting
Families and households are one of the fundamental elements of an economic system. People in families work, earn, spend and save money. Earning an income and consumption of goods and services are an integral part of household economics. People consume goods and services to satisfy their multiple needs and wants. Consumption expenditure of a family / household is the value of the goods and services consumed. On the other side household income, is an on-going flow of economic resources received from legitimate sources. It includes money received through employment, as profit from business activity, by ownership of property, or Continue reading...
Good Essay On Budgeting And Performance Measure
Budgeting is a key aspect in finance management and acts as a guide to organization’s planning for management and those involved in operations and running of programs. In that respect, an effective budgeting process is suitable for any organization that seeks to achieve its finance objectives through a suitable resources’ allocation. In that view, several authors have varying arguments on different aspects of budgeting hence the objective of this analysis is demonstrating applicability of such views. To achieve the objective, the analysis uses Morrison’s business and critically evaluates its budgeting process in reference to the views that Continue reading...
Good Applied Managerial Finance Research Paper Example
There are number of things that come under the ambit of financial management, and among them, the name of Capital Budgeting is one of them (Parkinson, 2012). The main perspective of this assignment is to analyze the Capital Budgeting stance with the help of Net Present Value (NPV) and Internal Rate of Return (IRR).
Cash Flow Analysis
Initial Outlay = $ 20 Million Equipment
WACC = 5%
Tax Rate = 35%
The cash inflow is mentioned below,
Net Present Value
Net present value commonly denoted as NPV is an important financial tool which is applied to scrutinize the degree of deviation between present value of cash inflows and the Continue reading...
Free Critically Evaluate Budgeting As A Tool For Planning And Control Essay Sample
Critically Evaluate Budgeting as a Tool for Planning and Control
A budget can be described as the quantitative expression of the management’s plan for the future of a company. Budgeting involves formulating and implementing plans to attain organizational success. It does not just involve forecasting. It also entails converting the forecasts into numerical values. When budgeting is done properly, it can act as the planning and control system of the company. The functions of management include planning, controlling, staffing, organizing and directing. Budgeting is basically deals with two management functions: planning and controlling. The management of the company must plan all the activities of the business. It must Continue reading...
Sales Volume Variance Essay Example
Budgeting is the process whereby a list of all the planned and feasible revenues and corresponding costs is written down for a specific period of time in the future. It is a plan according to ones expenditure needs whereby all the necessary expenses are noted and a spending trend is established. This plan that is developed help prior understands whether on will be able to meet the spending needs and whether there will be enough cash resources available to meet the needs. The working principal for the budgeting process is simple i.e. all the expenses to be incurred are Continue reading...
Advantages And Disadvantages Of Involving Managers In Budgeting Report Samples
A budget is a systematic way of allocating human, physical and financial resources so as to achieve the strategic goals of a business or an organization. Budgets help businesses to monitor their progress towards the set goals and objectives. The practice of involving the managers in budget making rather than simply imposing budget on them is called participatory budgeting. The main reason behind involving the managers in the budget making process is to assign responsibility to subordinate managers and place some form of personal ownership on the final budget. Over the last two decades, management accounting research has resulted Continue reading...
Article Review On Administration
Willoughby, W. (1918). The movement for Budgetary Reform in the States. New York: D. Appleton and Company for the Institute for Government Research.
Thesis: The article discuss about the budget laws which are adopted by several states. The author expresses that budget is the essential tool of public administration. With the provision of comparative study the author also provided some criticisms of the main aspects of budgetary laws of the states. It is being emphasized in the article that an executive budget could not work successfully until the government of state becomes too much reorganized that it’s various Continue reading...