Free Essays on Budgeting to Get Inspired & Learn by Example

There are five main steps to budget building process:

Building a budget team: This is important so that representatives from all departments can be a part of the budget team and incorporate their ideas and suggestions in budget building (FMA, 2014).
Budget calendar: Calender is designed generally six months before the end of the fiscal year, and separate calendars are established for monitoring of the budget and internal management and reporting tasks. The Chief Financial Officer drafts the budget calendar and meeting dates (FMA, 2014).
Preparation for the budgeting process: This involves setting of goals, building up financial data and design of budget team. In this the design Continue reading...

Management Accounting Case Studies

Management Accounting Case Studies
1. Case 9-43

Executive summary

Jack Riley, as a budget controller in the division of social services for the state, practices the participative budgetary approach within the division. Jack Riley’s budgetary policy prescribes for department managers to prepare preliminary department budgets in compliance with set spending constraints that are further reviewed and, as a general rule, reduced by the division’s senior management. Afterwards, the department managers are responsible for fulfilling the reviewed budgets and are to account for any excessive expenditure incurred by their departments.
After analyzing Jack Riley’s budgetary approach, the following deficiencies Continue reading...

Thinking and Feeling

Among the keys to the continuity of businesses is the utilization of sensible regimens for budgeting, subject to their various peculiarities. Understanding priorities when it comes to resource allocation provides the impetus for proper budgeting, especially if businesses have plans not just for continued operations, but also for expansion. With that, businesses must have the following considerations for budgeting: short-term goals (e.g. maintenance) and long-term goals (e.g. expansion). Drafting plans for budgeting in view of both short-term and long-term goals enables businesses to reach their prospects, which are in line with their vision-mission. At the same time, budgeting must Continue reading...

Top-down budgeting approach or the bottom-up method

There are two main approaches to designing a budgeting proposal – a top-down approach and a bottom-up method. The top-down approach is where the total budget is set on the top and then is broken down into the components within the budget. On the other hand, the bottom-up approach is where the plan of the budget is decided, things are scheduled, and then the total budget is designed. The top-down budgeting approach is better because the management decides the budget at the initial level and then the tasks are scheduled accordingly, and the budget allocation is done likewise. Along with Continue reading...

The City and State

Poor budgeting has a number of implications of conventional performance. Arguably, several ideologies imply that poor budgeting has a critical effect on budgeting in organizations. Evidently, one of the key problematic areas in most contemporary business is the adoption of traditional budgets. The annual budget has a critical impact on performance as compared to strategic performance-based budgeting systems. As such, it is evident that most of the organizations that indicate poor budget implementation, commonly known as budgeting slack can largely impact organizations in a negative manner. The analysis of the impacts of poor budgeting in organizations has prompted organizations Continue reading...

Abstract

Capital budgeting is the basis for planning and forecasting activities of any organization. Capital budgeting is the process of selecting and implementing nai-more efficient capital projects from the perspective of maximizing the rate of return and minimize the cost of their funding sources. Thus understand the need and importance of capital budgeting, both for business and for the economy as a whole. Planning - this attribute is not a single economic entity, not the requirements of today's business environment, it is a natural strategic and tactical business development.
The activities of businesses are so diverse that the goals and Continue reading...

Question 1

JCDecaux is the world leader in the business of outdoor advertising. It was established as a private company in France in 1964 by J.C. Decaux to exploit a simple business concept: to provide street furniture for cities such as bus shelters, billboards or information panels in exchange for the right to place commercial advertising on its structures (JCDecaux, 2012 annual report). The concept proved to be successful and today JCDecaux is a public company operating in over 60 countries across the globe. From financial perspective, its business model can be described as follows: upon winning a long term contract ( Continue reading...

Investing In a Brewpub: A Capital Budgeting Analysis

Investing In a Brewpub: A Capital Budgeting Analysis

Initial investments include the following (Table 1)
Capital Investments for the project “Investing in a Brewpub”
Note: Data taken from Investing in a Brewpub: A Capital Budgeting Analysis. International Research Journal of Applied Finance (2013)

On the last period, the Brewpub is sold for $20,000 (estimated recovery value)

The change in working capital refers to amount spent on inventory and receivables at the initial period of the project and later on recuperated at the 10th year.
Sales in “best case scenario” are 7 barrels per set a year which equate to a total of 560 barrels or 138,800 pints a year at $5 Continue reading...

Abstract

Healthcare industry is subject to changes relating to service cost management with the changes involving regulation and policies ranging from federal to the state as well as the payment systems; all affecting healthcare institutions decision-making in addiion t o budgeting. The analysis used the case of West Florida Hospital that offers an extensive array of treatment and rehabilitative services mainly providing services to individuals having activity limitations. The institution has been identified to have been applying flexible budgeting, as well as a combination of pay systems.
Those systems include the use of codes in billing as well as the Continue reading...

An imposed budget forecast approach does not allow input from those who are directly affected by the process. This can tend to make the employees feel that they are unimportant and that management is concerned only with meeting budgetary goals and not necessarily with the well-being of employees. The employees will probably feel less of a bond with the organization and will feel that they are meeting standards set by others.
Discuss additional behavioral implications of planning and control when a company’s management employs an imposed budgetary approach and a participative budgetary approach.

Imposed Budgetary Approach

An imposed approach is impersonal Continue reading...