This document discusses key concepts related to budgeting including:
1. Budgets translate organizational goals and strategies into operational terms and are used for planning and control by setting standards and comparing actual performance.
2. Master budgets combine all individual area and activity budgets, while operating budgets concern income generation and financial budgets concern cash flows and capital expenditures.
3. Flexible budgets are superior to static budgets for performance reporting because they allow comparison of actual costs to budgeted costs at the actual level of activity.
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What does Zero Based Budgeting mean for agencies?Ged Carroll
So your client has introduced Zero Based Budgeting what does that mean for your agency. More thinking on http://renaissancechambara.jp/2016/02/14/what-does-zero-based-budgeting-mean-for-agencies/
This slideset outlines a package of materials developed by NHS England to support commissioners to develop strong, robust and ambitious five year plans to secure the continuity of sustainable high quality care for all.
Budgetary Controlling Techniques Budgeting is the formulation of plans for a given future period in numerical terms. Organizations may establish budgets for units, departments, divisions, or the whole organization.
Budgetary Control Techniques
budgetary control methods
controlling techniques in management
planning tools for budgetary control
risk controlling techniques
control methods in management
control as a function of management pdf
controlling management process
organizational control methods
control methods in business
types of managerial control
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introduction to management pdf
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In an effort to minimize waste and more strategically spend every dollar, more and more companies are exploring Zero-Based Budgeting (ZBB). As opposed to incremental budgeting, where last year’s budget serves as the primary driver for budget allocations for the coming year, ZBB allocates funds based on the merits of each department’s policies, goals and spending justifications. However, transitioning to a ZBB process within
manufacturing can be challenging and labor-intensive for organizations and their teams.
Built on three core pillars of People, Process and Performance, Myrtle’s ZBB Excellence Approach is designed to enhance the effectiveness of the ZBB work process and achieve all of the advantages and insights of ZBB while minimizing workload, confusion and frustration. Myrtle’s ZBB Excellence Approach gives companies a standard but flexible methodology to optimize and monitor the critical corporate process of capital allocation to ensure operational success.
What does Zero Based Budgeting mean for agencies?Ged Carroll
So your client has introduced Zero Based Budgeting what does that mean for your agency. More thinking on http://renaissancechambara.jp/2016/02/14/what-does-zero-based-budgeting-mean-for-agencies/
This slideset outlines a package of materials developed by NHS England to support commissioners to develop strong, robust and ambitious five year plans to secure the continuity of sustainable high quality care for all.
Budgetary Controlling Techniques Budgeting is the formulation of plans for a given future period in numerical terms. Organizations may establish budgets for units, departments, divisions, or the whole organization.
Budgetary Control Techniques
budgetary control methods
controlling techniques in management
planning tools for budgetary control
risk controlling techniques
control methods in management
control as a function of management pdf
controlling management process
organizational control methods
control methods in business
types of managerial control
examples of controlling in management
what is controlling in management
controlling in management pdf
managerial functions pdf
organizing function of management pdf
four functions of management pdf
management control system definition
introduction to management pdf
managerial function of control
the control function of management
In an effort to minimize waste and more strategically spend every dollar, more and more companies are exploring Zero-Based Budgeting (ZBB). As opposed to incremental budgeting, where last year’s budget serves as the primary driver for budget allocations for the coming year, ZBB allocates funds based on the merits of each department’s policies, goals and spending justifications. However, transitioning to a ZBB process within
manufacturing can be challenging and labor-intensive for organizations and their teams.
Built on three core pillars of People, Process and Performance, Myrtle’s ZBB Excellence Approach is designed to enhance the effectiveness of the ZBB work process and achieve all of the advantages and insights of ZBB while minimizing workload, confusion and frustration. Myrtle’s ZBB Excellence Approach gives companies a standard but flexible methodology to optimize and monitor the critical corporate process of capital allocation to ensure operational success.
Managing Finance (MNGFIN) Week 4 Budgeting and accounting.docxinfantsuk
Managing Finance (MNGFIN)
Week 4: Budgeting and accounting for control
Budgets and strategic planning
Textbook reading (Atrill & McLaney: Ch. 6)
At this point in your studies, you are most likely familiar with the importance of
strategic planning for organisations. Such planning requires the setting of a long-
term mission that all individuals within the company seek to fulfil. This is
accomplished through the development of smaller, more specific goals and
objectives that are to be accomplished in a shorter time period. These specific goals
and objectives are expressed and shown through the determination and use of
budgets. Budgets are very important tools that play an integral role in the strategic
planning process. In simple terms, budgets are tactical and operational plans
established from strategic plans and are prepared to attain certain objectives
expressed in financial terms. While the company may have a goal of, say, ‘being the
largest organisation within its industry’, this statement falls short in terms of
measurement. In order to judge whether this goal was accomplished or not, we must
express the objective in certain financial terms, such as market share, sales revenue,
or profits.
Budgets offer the benefit of serving as a measuring stick against which actual
performance can be compared to planned or desired performance. By expressing
goals in financial terms, the organisation is then able to properly compare its actions
and results to ensure that efforts are in line with its strategic mission. Usually
prepared for a 1-year time period and then broken down into smaller units, such as
months, budgets offer flexibility while also being forward-looking. These tools should
not be thought of as constraining, where staying within the budget must take place
no matter what must be sacrificed. Rather, budgets serve as a control mechanism,
providing a framework that the organisation or business unit should seek to work
within. Realistic budgets should serve as a motivating factor for managers to meet
certain standards and also serve as a barometer that detects when things are going
off course. In this reading you will explore how budgets support the strategic
planning process as well as how different types of budgets are interrelated. The
authors also provide a general overview of the planning and control process.
Budgets for performance evaluation
Textbook reading (Atrill & McLaney: Ch. 6)
While budgets serve as frameworks that help to guide individuals within the
organisation, they are also excellent methods for evaluating the performance of
divisions, business units, managers, and/or employees. Since budgets incorporate
desired results, organisations are able to compare the actual results against the
planned and desired results to determine if objectives were met. If not, managers are
better able to discern what areas fell short of expectations. By examin ...
Chapter 2 Strategic Planning and Budgeting—Process, Preparation, .docxchristinemaritza
Chapter 2: Strategic Planning and Budgeting—Process, Preparation, and Control
OVERVIEW
Although it differs among companies, planning charts the direction of the company over a period of time to accomplish a desired result, such as improving profitability. Budgeting is simply one portion of the plan, and the annual budget should be consistent with the long-term goals of the business. Planning should link short-term, intermediate-term, and long-term goals. Plans are interrelated, and the annual plan may be based on the long-term plan. The objective is to make the best use of the company's available resources over the long term.
In planning, management selects long-term and short-term goals and draws up plans to accomplish those goals. Planning is more important in long-run management. The objectives of a plan must be continually appraised in terms of degree of accomplishment and how long implementation will take. There should be feedback as to the plan's progress. It is best to concentrate on accomplishing fewer targets so proper attention will be given to them. Objectives must be specific and measurable. For example, a target to increase sales by 20 percent is definite and specific. The manager can quantitatively measure progress toward meeting this target.
The plan is the set of details implementing a strategy. The plan of execution typically is explained in sequential steps, including costs and timing for each step. Deadlines are set.
The planning function includes all managerial activities that ultimately enable an organization to achieve its goals. Because every organization needs to set and achieve goals, planning often is called the first function of management. At the highest levels of business, planning involves establishing company strategies—that is, determining how the resources of the business will be used to reach its objective. Planning also involves the establishment of policies—the day-to-day guidelines used by managers to accomplish their objectives. The elements of a plan include objectives, performance standards, appraisal of performance, action plan, and financial figures.
All management levels should be involved in preparing budgets. There should be a budget for each responsibility center. Responsibility in particular areas should be assigned for planning to specific personnel. At MillerCoors Company, planning is ongoing, encouraging managers to assume active roles in the organization.
A plan is a predetermined action course. Planning has to consider the organizational structure, taking into account authority and responsibility. Planning is determining what should be done, how it should be done, and when it should be done. The plan should specify the nature of the problems, reasons for them, constraints, contents, characteristics, category, alternative ways of accomplishing objectives, and information required. Planning objectives include quantity and quality of products and services, as well as growth opportunities.
A pla ...
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
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.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
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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.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
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Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
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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1. By : Cici Salfitri (1642009)
lecturer : SANTI YOPIE,SE.,MM.,CMA.,PROJECT+.,CIBA.,BKP.,CPA
Budgeting for Planning and
Controlling
2. Budgets are the quantitative expressions of plans. Budgets
are used to translate the goals and strategies of an
organization into operational terms.
Control is the process of setting standards, receiving feedback on actual
performance, and taking corrective action whenever actual performance
deviates from planned per- formance. Budgets are standards, and they
are compared with actual costs and reve- nues to provide feedback.
The planning and control functions of budg- eting can benefit all organizations regard- less of size. All
organizations need to de- termine what their goals are and how best to attain those goals. This is the
planning func- tion of budgeting. In addition, organizations can compare what actually happens with
what was planned to see if the plans are un- folding as anticipated. This is the control function of
budgeting.
Budgeting forces managers to plan, pro- vides resource
information for decision mak- ing, sets benchmarks for control
and evalua- tion, and improves the functions of communication
and coordination.
1
2
3
4
3. A master budget is the collection of all individual area and activity
budgets. Operating budgets are concerned with the incomegenerating
activities of a firm. Financial budgets are concerned with the inflows and
outflows of cash and with planned capital
expenditures.
The sales forecast is a critical input for building the sales budget. However, it is not
necessarily equivalent to the sales budget. Upon receiving the sales forecast,
management may decide that the firm can do better than the forecast indicates.
Consequently, actions may be taken to increase the sales potential for the coming year
(e.g., increasing advertising). This adjusted forecast then becomes the sales budget.
Explain the role of a sales forecast in budgeting.
What is the difference between a sales forecast
and a sales budget? 6
A
What is a master budget? An operating
budget? A
financial budget?5
All budgets depend on the sales budget. Is this
true? Explain.
7
For a merchandising firm, the production budget is replaced by a
merchandise purchases budget. Merchandising firms also lack
direct materials and direct labor budgets. All other budgets are
essentially the same. For a service firm (for-profit), the sales
budget doubles as the production budget, and there is no finished
goods inventory budget. The rest of the budgets
have counterparts.
Yes. All budgets are founded on the sales budget. Before a production
budget can be created, it must have the 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.
C
How do master budgets differ among manufacturing,
merchandising, and service organizations?
8
4. 9
Discuss the differences between static and flexible budgets. Why are flexible budgets superior to static
budgets for performance reporting?
A static budget is for a particular level of activity. A flexible budget is one that can be established for any level of activity.
For performance reporting, it is necessary to compare the actual costs for the actual level of activity with the budgeted
costs for the actual level of activity. A flexible budget provides the means to compute the budgeted costs for the actual
level of activity, after thefact.
10
Explain why mixed costs must be broken down into their fixed and variable components before a flexible budget can
be developed.
A flexible budget is based on a simple formula:
Y = F + VX, which requires knowledge
of both fixed and variable components.
12
Why is it important for a manager to receive frequent feedback on his or her performance?
Frequent feedback is important so that corrective
action can be taken, increasing the
likelihood of achieving budget. )
Goal congruence is important because it
means that the employees of an organization
are working toward the goals of that organization. 11
Why is goal congruence important?
5. Participative budgeting is a system of budgeting that allows subordinate managers a say in how the budgets are
established. Participative budgeting fosters creativity and communicates a sense of responsibility to subordinate
managers. It also creates a higher likelihood of goal congruence since managers have more of a tendency to
make the budget’s goals their own personal goals.
Top management should provide guidelines and statistical input (e.g., industrial forecasts) and should
review the budgets to minimize the possibility of budgetary slack and ensure that the budget is
compatible with the strategic objectives of the firm. Top management should also provide the
incentive and reward system associated with the budgetary system.
Agree. Individuals who are not challenged tend to lose interest and maintain
a lower level of performance. A challenging, but achievable, budget tends to
extract a higher level of performance.
By underestimating revenues and overestimating
costs, the budget is more easily
achieved.
Both monetary and nonmonetary incentives are used to encourage employees of an organization to
achieve the organization’s goals. Monetary incentives appeal to the economic needs of an individual, and
nonmonetary incentives appeal to the psychological needs. Since individuals are motivated by both
economic and psychological factors, both types of incentives ought to be present in a good budgetary
system.
14
15
16
17
Discuss the roles of monetary and
nonmonetary incentives. Do you believe that
nonmonetary incentives are needed? Why or
why not?
What is participative budgeting? Discuss
some ofits advantages.
A budget too easily achieved will lead to diminished
performance. Do you agree or disagree?
Explain.
What is the role of top management in
participative budgeting?
Explain why a manager has an
incentive to build slack into the budget.
13
6. To meet budget, it is possible to take actions that reduce costs in the short run
but increase them in the long run. For example, lower priced, lower-quality
materials can besubstituted for the usual quality of materials.
Other performance measures include productivity, personnel development,
market share, and product quality. A manager would have to be rewarded for
improvements achieved in each area. A major difficulty is determining how
much weight to assign
to each performance area.
Behavioral factors can make or break a budgetary control system. It is absolutely
essential to consider the behavioral ramifications. Ignoring them can and probably
willproduce dysfunctional consequences.
Across-the-board cuts have the appearance of being fair, but they unfairly penalize good
programs. In an era of scarce resources, an
organization must decide what it wishes to emphasize and allocate resources accordingly. This
may mean the complete elimination of weak programs and the strengthening of strong
programs. To cut each program equally without considering which ones are vital to the success
of the organization is not good planning.
18
19
20
21
7. 22
Explain how an activity-based budget is prepared.
Activity-based budgeting requires three steps: (1) identification of activities; (2)
estimation of activity output demands; and (3) estimation of the costs of resources
needed to provide the activity output demanded.
23
What is the difference between an activity flexible budget and a functional-based (traditional) flexible
budget?
Functional-based flexible budgeting relies on unit-based drivers to build cost formulas for
various cost items. Activity flexible budgeting uses activity drivers to build a cost formula
for the costs of each activity.