This presentation is about flexible budgeting and how it helps in adjusting the necessary changes in volume of activity. It is opposite of static budget, which remains fixed or at one amount regardless of the volume of activity.
This presentation is about flexible budgeting and how it helps in adjusting the necessary changes in volume of activity. It is opposite of static budget, which remains fixed or at one amount regardless of the volume of activity.
Module 5 Discussion ForumDiscussion Capital Budgeting and How to .docxmoirarandell
Module 5 Discussion Forum
Discussion: Capital Budgeting and How to Create Operating Budgets
Variance Analysis:
Write an analytical summary of your learning outcomes from chapters 9 and 10. In addition to your analytical summary, address the following:
1. As a manager, discuss how you would use or have used the concepts presented in chapters 9 and 10.
2. Why might managers find a flexible-budget analysis more informative than static-budget analysis?
3. How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Provide at least one numerical example to support your thoughts.
Instructions:
Completed the assignment by over 550 words and references.
- Read and respond to at least 3 of your classmates' posts.(Below posted my classmate discussions) Read a selection of your colleagues' postings. Respond to at least 3 of your classmates’ posts. (Each response should be 150 words, It should include the stuff like supporting their discussion and
Study Materials Link:
TextBook:https://saylordotorg.github.io/text_managerial-accounting/index.html
· Lesson Lecture
· Video-1: Capital BudgetingURL- https://www.youtube.com/watch?v=TrKVj_wLgUc
· Video-2: Capital BudgetingURL- https://www.youtube.com/watch?v=QRh0tiG2lVk
· Video: Sales BudgetURL- https://www.youtube.com/watch?v=frCX_bsFsao
· Video: Master Budget/Operating BudgetsURL- https://www.youtube.com/watch?v=Wy9MGFjS7ZAAssigned Reading/Study Materials
Use the following links to study Module 5 topics
Capital Budgeting Analysis
https://saylordotorg.github.io/text_managerial-accounting/s12-how-is-capital-budgeting-used-.html
Analysis of Operating Budgets:
https://saylordotorg.github.io/text_managerial-accounting/s13-how-are-operating-budgets-crea.html
3-Clasmate discussion
Discussion1:
by Srikanth Jagini - Wednesday, 6 May 2020, 4:57 PM
Analytical summary
Every organization always wants to create a budget that is flexible and more relevant for the appropriate outcome. The flexible budget is nothing but a budget or list of expenses that occur during a year and it controls the potential emergencies and mitigates the loss of the business. According to Yuzvovich, Korogodina & Azisova (2018), it has been stated that the various problems of budgets made the industrial workflow decreasing and its impact creates the industrial dislocation, a flexible budget is an actual solution and in mitigates the loss of industrial productivity. The flexible budget provides the necessary adjustment when any type of change occurred in the organization and it increases the productivity or capability of the business. Analysis of the performance of the workers and laborers is more important for the organizational perspective. Variance in the flexible budget is occurred due to lack of control and lack of using the materials and poor remuneration to the workers and most importantly by corruption in financial areas. With respect to Junita (2018), it has bee ...
Module 5 Discussion ForumDiscussion Capital Budgeting and How to .docxssuserf9c51d
Module 5 Discussion Forum
Discussion: Capital Budgeting and How to Create Operating Budgets
Variance Analysis:
Write an analytical summary of your learning outcomes from chapters 9 and 10. In addition to your analytical summary, address the following:
1. As a manager, discuss how you would use or have used the concepts presented in chapters 9 and 10.
2. Why might managers find a flexible-budget analysis more informative than static-budget analysis?
3. How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Provide at least one numerical example to support your thoughts.
Instructions:
Completed the assignment by over 550 words and references.
- Read and respond to at least 3 of your classmates' posts.(Below posted my classmate discussions) Read a selection of your colleagues' postings. Respond to at least 3 of your classmates’ posts. (Each response should be 150 words, It should include the stuff like supporting their discussion and
Study Materials Link:
TextBook:https://saylordotorg.github.io/text_managerial-accounting/index.html
· Lesson Lecture
· Video-1: Capital BudgetingURL- https://www.youtube.com/watch?v=TrKVj_wLgUc
· Video-2: Capital BudgetingURL- https://www.youtube.com/watch?v=QRh0tiG2lVk
· Video: Sales BudgetURL- https://www.youtube.com/watch?v=frCX_bsFsao
· Video: Master Budget/Operating BudgetsURL- https://www.youtube.com/watch?v=Wy9MGFjS7ZAAssigned Reading/Study Materials
Use the following links to study Module 5 topics
Capital Budgeting Analysis
https://saylordotorg.github.io/text_managerial-accounting/s12-how-is-capital-budgeting-used-.html
Analysis of Operating Budgets:
https://saylordotorg.github.io/text_managerial-accounting/s13-how-are-operating-budgets-crea.html
3-Clasmate discussion
Discussion1:
by Srikanth Jagini - Wednesday, 6 May 2020, 4:57 PM
Analytical summary
Every organization always wants to create a budget that is flexible and more relevant for the appropriate outcome. The flexible budget is nothing but a budget or list of expenses that occur during a year and it controls the potential emergencies and mitigates the loss of the business. According to Yuzvovich, Korogodina & Azisova (2018), it has been stated that the various problems of budgets made the industrial workflow decreasing and its impact creates the industrial dislocation, a flexible budget is an actual solution and in mitigates the loss of industrial productivity. The flexible budget provides the necessary adjustment when any type of change occurred in the organization and it increases the productivity or capability of the business. Analysis of the performance of the workers and laborers is more important for the organizational perspective. Variance in the flexible budget is occurred due to lack of control and lack of using the materials and poor remuneration to the workers and most importantly by corruption in financial areas. With respect to Junita (2018), it has bee.
Budgeting is extremely important, whether for personal or business.docxhartrobert670
Budgeting is extremely important, whether for personal or business reasons. Budgets are of many types and are the main tools used for planning, control, and decision making in almost every organization. These can also be used to force organizations to plan for future communication, coordination, resource allocation, profit control, and performance evaluation.
Many professional service firms rely heavily on the use of time budgets. For example, architect firms know on average how long it takes to work with commercial clients on the design of a building or with individuals for a house. Based on these estimates, management assigns clients to architects within the firm and estimates the fees that will be charged. If one architect has five clients assigned to him or her and each design is budgeted to be completed in ten hours, this means that fifty hours of work have been delegated for completion by that architect. Additional work will not be assigned to this architect until all other architects are equally assigned the same number of hours. Additionally, if it takes this architect ninety hours to complete the designs, as against the assigned fifty hours, this may be a sign there are issues with the productivity of this architect that need to be examined.
In the assignments you will get an opportunity to examine how budgets are used to analyze performance and set incentives for employees and management within an organization. You will also make recommendations for improving the effectiveness of such systems.
Budgets affect just about every department and every person within an organization. This tremendous impact causes people to act differently to make sure the budgets are met. One common way of doing this is to pad budgets. However, this makes the prepared budget less useful, as it is not an accurate representation of the company. A company can ensure the accuracy of budgets by involving employees throughout the organization in creating the budgets. This process, referred to as participative budgeting, makes employees feel more involved, and they are likely to be more willing to stick to and follow the budget.
Budgeting can be a very time-consuming task, but it is necessary if a company is to maintain business for the long term. Most companies have a budget director who is in charge of budgeting to keep everything organized. Organizations will also have a budget committee made up of senior executives who help advise the budget director. It helps to have people who are familiar with budgeting involved, as this makes the process run smoother.
A standard costing system is the traditionally used costing system. It has two main purposes: cost control and product costing. Standard costs are determined by accountants working together with other employees of the organization. Such costs are created for direct material, direct labor, and manufacturing overhead. A cost manager would use these standard cost figures as a benchmark with which to compare ...
BudgetingUsing concepts like flexible budgeting and participativ.docxcurwenmichaela
Budgeting
Using concepts like flexible budgeting and participative budgeting, discuss why it is important for a company to use budgeting techniques. What type of managerial problems can be caused by the use of budgets?
Submission Instructions:
Any written explanations should use complete sentences, and appropriate grammar, punctuation, spelling and word usage.
Your initial post should be at 200-300 words, formatted and cited in current APA style with support from at least 2 academic sources. Your initial post is worth 8 points.
You should respond to at least two of your peers by extending, refuting/correcting, or adding additional nuance to their posts. Your reply posts are worth 2 points (1 point per response.)
Post by classmate 1
Budget is defined as a plan expressed in quantitative/monetary terms for a specific period of time, usually one year period (Anthony, Hawkins & Merchant, 2011). This is the way companies plan their expenditures with the end goal of obtaining a profit and use responsibility centers/departments/cost centers to help structure such budgets. Even nonprofit organizations prepare budgets as they serve as an aid in making and coordinating short-range plans, communicating plans to the different departmental managers, a way to motivate managers in achieving their goals and controlling ongoing activities and expenses. It also serves as a “ basis for evaluating and educating the performance of responsibility centers and their managers”. (Anthony, Hawkins & Merchant, 2011).
In a typical company you will find a master budget which comprises several items such as the operating budget, cash budget and capital expenditure budget. The operating budget includes revenues, expenses, changes in inventory and working capital items for all the planned operations in the upcoming year. The cash budget provides information with regard to the predicted cash that will be used in that year and the sources. A capital expenditure budget will show any changes in property, plant and equipment already planned for.
Many companies use flexible budgeting to prepare for different activities planned for the year, revenues and expenses. These get modified during the year to reflect actual sales, any changes in cost of production and changes in business operating conditions. This flexibility often allows owners and managers to adapt to the changes forthcoming. On the other hand, predictive budgeting can result in a bit of a mess for managers if not handled correctly as this type of budgeting involves a larger number of employees who are not all top-level managers. This is because given the amount of people involved, it can take longer to create a budget and there might be cost associated that can potentially be higher than having the top level managers handle the creation of budgets for the company. A company may also run into a situation where those same employees participating or originating the budget are also the same ones who pe.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
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This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
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Budgeting for planning and control
1. Budgeting for Planning and control
Eria Astuti (1642194)
Lecturer :
Santi Yopie, SE., MM., CMA., Project+,. CIBA., CPA.,BKP.
2. Budgets are the quantitative expressions of these plans, stated
in either physical or financial terms or both. When used for
planning, a budget is a method for translating the goals and
strategies of an organization into operational terms.
Define budget, how are budets used in planning ?
3. Define budget, how are budets used in planning ?
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Control is the process of setting standards, receiving
feedback on actual performance, and taking corrective action
whenever actual performance deviates significantly from
planned performance. Thus Budgets can be used to compare
actual outcomes with planned outcomes, and they can steer
operation back on course, if necessary.
4. Discuss some of the reasons for budgeting ?
1. Budgeting forces managers to plan, provides resource information for
decision making, set benchmarks for control and evaluation, and
improves the functions of communication and coordination.
2. A budget help you gain control of your finances.
3. A budget reveals areas where you’re spending too much money so
you can refocus on you most important goals.
4. A good budget keeps you honest.
5. Budgeting helps improve habits.
6. Budgeting help you avoid debt and improve credit.
5. Explain the role of a sales forecast in budgeting.
What is the difference between a sales forecast and a
sales budget?
The sales forecast is a critical input for building the sales budget. It, however, is
not necessarily equivalent to the sales budget. Upon receiving the sales forecast,
management may decide that the firm can do better or needs to do better than
the forecast is indicating. Consequently, actions may be taken to increase the
sales potential for the coming year (e.g., increasing advertising). This
adjustment then becomes the sales budget.
6. All budgets depend on the sales budget. Is this true?
Explain.
Yes. All budgets essentially are founded on the sales budget. The
production budget depends on the level of planned sales. The
manufacturing budgets, in turn, depend on the production budget. The same
is true for the financial budgets since sales is a critical input for budgets in
that category.
7. Suppose that the vice president of sales is a particularly
pessimistic individual. If you were in charge of developing
the master budget, how, if at all,would you be influenced by
this knowledge?
If the vice President is a pessimistic individual, he/she will not have a high
expectation for his/ her results; therefore, I would count or show him/her the
amount of sales budget and make him/her a better individual,
8. Suppose that the controller of your company’s largest factory is
a particularly optimistic individual. If you were in charge of
developing the master budget, how, if at all, would you be
influenced by this knowledge?
If the factory controller is a particularly optimistic individual, it is possible that the
costs for direct materials, direct labor, and overhead could be underestimated.
For example, an optimistic person might assume that everything will go well (e.g.,
that there will be no problems in obtaining an adequate supply of materials at the
lowest possible price). As head of the budget process, you might allow for
somewhat higher costs to more accurately reflect reality.
9. What impact does the learning curve have on budgeting? What
specific budgets might be affected? (Hint: Refer to Chapter 3
for material on the learning curve.)
The learning curve is the relationship between unit costs of production and
increasing number of units. As time goes on, the number of units produced in
a time period will increase and the cost per unit will decrease. The budgets
affected will be the direct materials purchases budget, the direct labor
budget, and the overhead budget.
10. While many small firms do not put together a complete master
budget, nearly every firm creates a cash budget. Why do you
think that is so?
Small firms often do not engage in a comprehensive master budgeting
process. (Personally, we believe that is a mistake. The budgeting process helps
management more fully understand the business and helps them to plan for
the coming year.)
Even small businesses create cash budgets, however, because cash flow is
critically important.
For example, it is possible to have positive operating income, but negative
cash flow (e.g., if sales on account are high, but customers are slow to pay).
Negative cash flow could put a company out of business in short order.
11. Discuss the shortcomings of the traditional master budget. In
what situations would the master budget perform well?
The master budget has been criticized for the following reasons: it does not
recognize the interdependencies among departments, it is static, and it is
results rather than process oriented.
These criticisms are especially apparent when companies are in a
competitive, dynamic environment. When the environment changes slowly, if
at all, the master budget would do a good job of both planning and control
12. Define static budget. Give an example that shows how reliance on
a static budget could mislead management.
A static budget is one that is not adjusted for changes in activity. Using a
static budget for control can be a real problem.
For example, suppose that the master (static) budget is based on the
production and sale of 100,000 units, but that only 90,000 units are actually
produced and sold. Further suppose that the budgeted variable cost of goods
sold was $2,000,000, and that the actual variable cost of goods sold was
$1,890,000. It looks as if the company spent less than expected for variable
manufacturing costs. However, the budgeted variable cost was $20 per unit
($2,000,000/100,000), and the actual variable cost per unit is $21 per unit
($1,890,000/90,000). Not adjusting the budget for changes in activity level
can mislead managers about efficiency.
13. What are the two meanings of a flexible budget? How is the
first type of flexible budget used? The second type?
1. Provides expected costs for a range of activity = is used for planning and
sensitivity analysis.
2. Provides budgeted costs for the actual level of activity = is used for control,
since actual cost of the actual level of activity can be compared with the
planned cost for the actual level of activity.
14. What are the steps involved in building an activity-based
budget? How do these steps differentiate the ABB from the
master budget?
The activity-based budget starts with output, determines the activities necessary to
create that output, and then determines the resources necessary to support the
activities. This differs from the traditional master budgeting process in that the
master budget leaps directly from output to resources. Some of the resource levels
are assumed to be fixed. This makes them independent of volume changes and hides
the drivers that actually do affect the fixed resources. As a result, the budget format
does not support the creation of value and the thinking that would go into
determining the sources of waste.