The document defines budgets and budgetary control. It states that a budget is a financial plan for a defined future period that is used for planning, performance evaluation, and control. Budgetary control involves establishing budgets for departments, continuously comparing actual performance to budgets, analyzing variations, and taking corrective actions. The document also discusses the objectives, essentials, and preliminary steps in installing an effective budgeting system, including creating budget centers and a budget committee. It describes different types of functional and master budgets.
Budgets are financial plans prepared in advance to help achieve objectives. There are various types including sales, production, cash budgets. Budgetary control involves establishing budgets, comparing actuals to budgets, analyzing variances, and revising budgets. The key purposes of budgeting and budgetary control are planning, coordination, communication, motivation, control, and performance evaluation. It helps management anticipate the future, coordinate departments, pinpoint inefficiencies, and direct resources for maximum profit.
Budget and Budgetary Control related to managerial accountingRohitDutta45
The document defines budgets and budgetary control. It explains that a budget is a financial plan outlining expected revenues and expenses. Budgetary control involves establishing budgets and comparing actual results to ensure goals are met. The key aspects of budgetary control are continuous monitoring, variance analysis, and taking corrective actions. The document also describes different types of budgets such as operating, capital, and master budgets, as well as fixed and flexible budgets.
This document discusses budgetary control and classification of budgets. It covers the following key points:
Budgets can be classified according to time (short-term, long-term, current, rolling), functions (sales, production, cost of production, cash, R&D), purpose (program, responsibility, financial, zero-based), and flexibility. Common budgets include the master budget, operating budget, and responsibility budget.
Effective budgetary control requires establishing an organization structure with defined budget centers and officers, a budget committee, budget manual, budget period, and consideration of key factors. Budgets are an important planning and performance evaluation tool.
Budgeting and budgetary control involves short-term financial planning to achieve predetermined targets. A budget is a written plan covering projected activities and resources for a defined time period. Budgetary control manages costs through preparing budgets and comparing actual to budgeted costs. The objectives of budgetary control include production efficiency, cost control, and helping frame policies. Budgets are prepared at various levels and cover functional areas like sales, production, materials, labor, and overhead. Key aspects of effective budgetary control include proper organization, defining budget centers, a budget manual, and a budget officer. Budgets can be fixed, flexible, long-term, or short-term depending on needs.
A nursing budget is a systematic financial plan that estimates nursing revenues and expenses over a set period of time. It is informed by analyzing past income and expenditures and projecting how revenues will cover estimated costs. Nursing budgets can take different forms depending on factors like the budget period, level of flexibility, and whether costs are estimated by program or department. The nurse administrator plays a key role in formulating the budget by consulting with managers, justifying funding needs, and ensuring client safety is not compromised by fiscal constraints.
Budget control and budget making techniques in a hospitalmeghadevgan3
The document discusses various techniques for budget control and budget making. It begins by defining what a budget is and then discusses the differences between budgets, budgeting, and budget control. It outlines the key things a budget needs to do including projecting revenue, determining expenses, and predicting profits. The document then discusses various types of budgets such as time-based budgets, function-based budgets, and flexibility-based budgets. It also outlines the steps in the budgetary process including assessment, development, implementation, and evaluation. Finally, it discusses techniques for budgeting such as conventional budgeting, zero-based budgeting, and performance-based budgeting.
A budget is a plan for projected income and expenses over a defined period. Budgeting involves formulating budgets, while budgetary control uses budgets to plan and control all aspects of production. Key elements of budgetary control include preparing budgets for each department, conducting ongoing comparisons of actual vs. budgeted performance, and taking corrective actions on variances. Budgets can be classified by time period (long-term vs. short-term), function (sales, production, etc.), or flexibility (fixed vs. flexible). Zero-based budgeting requires justifying all expenses for each new period without relying on previous budgets.
Budgets are financial plans prepared in advance to help achieve objectives. There are various types including sales, production, cash budgets. Budgetary control involves establishing budgets, comparing actuals to budgets, analyzing variances, and revising budgets. The key purposes of budgeting and budgetary control are planning, coordination, communication, motivation, control, and performance evaluation. It helps management anticipate the future, coordinate departments, pinpoint inefficiencies, and direct resources for maximum profit.
Budget and Budgetary Control related to managerial accountingRohitDutta45
The document defines budgets and budgetary control. It explains that a budget is a financial plan outlining expected revenues and expenses. Budgetary control involves establishing budgets and comparing actual results to ensure goals are met. The key aspects of budgetary control are continuous monitoring, variance analysis, and taking corrective actions. The document also describes different types of budgets such as operating, capital, and master budgets, as well as fixed and flexible budgets.
This document discusses budgetary control and classification of budgets. It covers the following key points:
Budgets can be classified according to time (short-term, long-term, current, rolling), functions (sales, production, cost of production, cash, R&D), purpose (program, responsibility, financial, zero-based), and flexibility. Common budgets include the master budget, operating budget, and responsibility budget.
Effective budgetary control requires establishing an organization structure with defined budget centers and officers, a budget committee, budget manual, budget period, and consideration of key factors. Budgets are an important planning and performance evaluation tool.
Budgeting and budgetary control involves short-term financial planning to achieve predetermined targets. A budget is a written plan covering projected activities and resources for a defined time period. Budgetary control manages costs through preparing budgets and comparing actual to budgeted costs. The objectives of budgetary control include production efficiency, cost control, and helping frame policies. Budgets are prepared at various levels and cover functional areas like sales, production, materials, labor, and overhead. Key aspects of effective budgetary control include proper organization, defining budget centers, a budget manual, and a budget officer. Budgets can be fixed, flexible, long-term, or short-term depending on needs.
A nursing budget is a systematic financial plan that estimates nursing revenues and expenses over a set period of time. It is informed by analyzing past income and expenditures and projecting how revenues will cover estimated costs. Nursing budgets can take different forms depending on factors like the budget period, level of flexibility, and whether costs are estimated by program or department. The nurse administrator plays a key role in formulating the budget by consulting with managers, justifying funding needs, and ensuring client safety is not compromised by fiscal constraints.
Budget control and budget making techniques in a hospitalmeghadevgan3
The document discusses various techniques for budget control and budget making. It begins by defining what a budget is and then discusses the differences between budgets, budgeting, and budget control. It outlines the key things a budget needs to do including projecting revenue, determining expenses, and predicting profits. The document then discusses various types of budgets such as time-based budgets, function-based budgets, and flexibility-based budgets. It also outlines the steps in the budgetary process including assessment, development, implementation, and evaluation. Finally, it discusses techniques for budgeting such as conventional budgeting, zero-based budgeting, and performance-based budgeting.
A budget is a plan for projected income and expenses over a defined period. Budgeting involves formulating budgets, while budgetary control uses budgets to plan and control all aspects of production. Key elements of budgetary control include preparing budgets for each department, conducting ongoing comparisons of actual vs. budgeted performance, and taking corrective actions on variances. Budgets can be classified by time period (long-term vs. short-term), function (sales, production, etc.), or flexibility (fixed vs. flexible). Zero-based budgeting requires justifying all expenses for each new period without relying on previous budgets.
The document discusses budgets and budgetary control. It defines a budget as a detailed plan of operations for a future period that acts as a business barometer. Budgetary control involves establishing budgets relating to executive responsibilities and comparing actual results to budgets to motivate employees and secure objectives. The objectives of budgetary control include planning, communication, coordination, control, and motivation. Advantages are defining objectives, revealing variances, guiding executive action, and providing a basis for future budgets. Limitations include using estimates and continually adapting budgets. Budgets can be classified by time, function, and flexibility.
The document discusses various types of budgets used in budgetary control including: sales, production, cost of production, purchase, personnel, R&D, capital expenditure, cash, master, fixed, flexible, and zero-base budgets. It also discusses capital budgeting techniques for evaluating investment proposals including payback period, accounting rate of return, net present value, profitability index, and internal rate of return.
This document provides information about budgets, including their definition, essential components, benefits, and types. It defines a budget as a monetary plan for a defined future period. Budgeting allows organizations to prioritize spending, focus on goals, and identify potential problems in advance. Types of budgets include functional budgets for specific areas like sales and production, the master budget which combines these, and flexible versus fixed budgets. The document also provides examples of how to format budgets for different areas.
- A budget is a financial plan for anticipated expenses. Budgetary control involves preparing budgets, comparing actual to budgeted figures, and addressing deviations to improve planning and coordination.
- The objectives of budgetary control include planning income/expenses, controlling costs, coordinating activities, establishing accountability, and improving efficiency.
- Budgets can be classified by time (long, short, current), flexibility (fixed vs flexible), and function (sales, production, materials, labor, overhead). Zero-base budgeting periodically re-evaluates budget needs rather than incremental changes.
The document discusses different types of budgets and costs. It defines budgets as financial plans for a defined period, usually a year, based on expected income and expenses. It outlines various types of budgets such as master and functional budgets, capital and revenue budgets, long-term and short-term budgets, and fixed and flexible budgets. It also defines different types of costs such as fixed costs, variable costs, sunk costs, and direct vs indirect costs. The document provides examples and explanations of each concept.
The document discusses key concepts related to budgeting and budgetary control. It defines a budget as a financial plan for a defined period that is prepared and approved in advance to achieve objectives. Budgeting is described as the process of designing, implementing, and operating budgets. Budgetary control involves establishing budgets, relating responsibilities to the budgets, and continuously comparing actual performance to budgets. The advantages and limitations of budgets are also summarized.
This document provides an overview of budgeting in nursing practice. It defines key terms like budget and discusses the purposes, principles, types, and process of budgeting. Some main points:
- A budget translates plans into monetary requirements and allows for control and evaluation of financial goals. It involves planning, implementation, and evaluation stages.
- Budgets can be classified as master/functional, capital/revenue, long-term/short-term, and fixed/flexible depending on their coverage, nature, period, and flexibility.
- The budgeting process involves assessing needs, developing a plan, implementing it with ongoing monitoring, and evaluating results periodically to allow for modifications.
- Formulating, reviewing
Budgeting is a process of looking at a business estimated incomes and expenditures over a specific period in the future. It allows a business to see if they will be able to continue operating at their expected level with these projected incomes and expenditures
Budgeting involves developing detailed plans for future operations and expenditures. There are various types of budgets classified by time period (long/short-term), function (sales, production, costs), and flexibility (fixed vs flexible). Key budgets include sales, production, costs, purchases, personnel, R&D, capital, and cash budgets. Budgetary control is the process of establishing responsibility center budgets, continuously comparing actual performance to budgets, and analyzing variances to help ensure objectives are met and inform future revisions if needed. It aids management in planning, coordination, and control.
Budgetary control is the process of comparing actual results to planned budgets in order to calculate variances and ensure maximum profitability. It involves preparing budgets, coordinating departments, and acting on performance results. A budget officer coordinates budgets across departments and informs management of deviations. Budget committees include department heads and are responsible for budget preparation and execution. Key factors that influence other budgets, like sales quantities, are identified. Budgetary control aims to maximize profits through planning, coordination, accountability, and correction of weaknesses.
- Budgeting is an operational plan for a defined period, usually a year, expressed in financial terms based on expected income and expenditures.
- The purposes of a budget include facilitating planning and decision making, recognizing controllable and uncontrollable costs, and allowing for feedback on utilization of funds.
- Key aspects of developing a budget include ensuring flexibility, synthesizing past, present and future factors, and gaining support from top management.
Budgetary control is a powerful management tool that involves establishing budgets relating to the responsibilities of executives and requirements of policies. It fixes targets in terms of money and relates to both management and accounting functions. The process involves forecasting planned events, comparing actual results to budgets, and revising budgets and policies based on deviations. It aims to assist management with planning, coordination, and control through clarifying objectives, delegating authority, and motivating performance.
Budgetary control is a powerful management tool that involves establishing budgets relating to the responsibilities of executives and requirements of policies. It assists management in planning, allocation of resources, and control. The document discusses key aspects of budgetary control including objectives, preparation, types (functional budgets for sales, production, etc.), and advantages like profit estimation and coordination. Challenges include opposition to the spirit of budgeting and adapting to changing economic conditions.
Budgetary control is a powerful management tool that involves establishing budgets relating to the responsibilities of executives and requirements of policies. It fixes targets in terms of money and relates to both management and accounting functions. The process involves forecasting planned events, preparing budgets for each accounting period and comparing actual results to budgets continuously to ensure objectives are met or to provide a basis for revising policies. Effective budgetary control requires clarifying objectives, delegating authority and responsibility, communicating changes, and motivating participation through the entire budget process.
This document discusses different types of budgets used in business. Budgets can be classified in several ways: by time (long-term vs short-term), by capacity (fixed vs flexible), and by scope (functional vs master). Functional budgets include sales, production, materials, purchase, and cash budgets. A master budget integrates all functional budgets to estimate profit/loss and financial position. Budgets can also be classified by receipts and expenditures as capital budgets or revenue budgets. In conclusion, budgets are prepared maps that aim to optimize resource utilization according to organizational policies and functions.
Here are the key steps to calculate the direct labor budget:
1. Determine the standard direct labor hours required per unit from production standards.
2. Calculate the total standard direct labor hours required for the total units to be produced:
- Total units to be produced x Standard direct labor hours per unit
3. Calculate the total budgeted direct labor cost:
- Total standard direct labor hours x Direct labor rate per hour
So using the information provided:
- Units to be produced: 3,700
- Standard direct labor hours per unit: 3 hours
- Total standard direct labor hours: 3,700 x 3 = 11,100 hours
- Direct labor rate: $7 per hour
- Total
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
The document discusses budgets and budgetary control. It defines a budget as a detailed plan of operations for a future period that acts as a business barometer. Budgetary control involves establishing budgets relating to executive responsibilities and comparing actual results to budgets to motivate employees and secure objectives. The objectives of budgetary control include planning, communication, coordination, control, and motivation. Advantages are defining objectives, revealing variances, guiding executive action, and providing a basis for future budgets. Limitations include using estimates and continually adapting budgets. Budgets can be classified by time, function, and flexibility.
The document discusses various types of budgets used in budgetary control including: sales, production, cost of production, purchase, personnel, R&D, capital expenditure, cash, master, fixed, flexible, and zero-base budgets. It also discusses capital budgeting techniques for evaluating investment proposals including payback period, accounting rate of return, net present value, profitability index, and internal rate of return.
This document provides information about budgets, including their definition, essential components, benefits, and types. It defines a budget as a monetary plan for a defined future period. Budgeting allows organizations to prioritize spending, focus on goals, and identify potential problems in advance. Types of budgets include functional budgets for specific areas like sales and production, the master budget which combines these, and flexible versus fixed budgets. The document also provides examples of how to format budgets for different areas.
- A budget is a financial plan for anticipated expenses. Budgetary control involves preparing budgets, comparing actual to budgeted figures, and addressing deviations to improve planning and coordination.
- The objectives of budgetary control include planning income/expenses, controlling costs, coordinating activities, establishing accountability, and improving efficiency.
- Budgets can be classified by time (long, short, current), flexibility (fixed vs flexible), and function (sales, production, materials, labor, overhead). Zero-base budgeting periodically re-evaluates budget needs rather than incremental changes.
The document discusses different types of budgets and costs. It defines budgets as financial plans for a defined period, usually a year, based on expected income and expenses. It outlines various types of budgets such as master and functional budgets, capital and revenue budgets, long-term and short-term budgets, and fixed and flexible budgets. It also defines different types of costs such as fixed costs, variable costs, sunk costs, and direct vs indirect costs. The document provides examples and explanations of each concept.
The document discusses key concepts related to budgeting and budgetary control. It defines a budget as a financial plan for a defined period that is prepared and approved in advance to achieve objectives. Budgeting is described as the process of designing, implementing, and operating budgets. Budgetary control involves establishing budgets, relating responsibilities to the budgets, and continuously comparing actual performance to budgets. The advantages and limitations of budgets are also summarized.
This document provides an overview of budgeting in nursing practice. It defines key terms like budget and discusses the purposes, principles, types, and process of budgeting. Some main points:
- A budget translates plans into monetary requirements and allows for control and evaluation of financial goals. It involves planning, implementation, and evaluation stages.
- Budgets can be classified as master/functional, capital/revenue, long-term/short-term, and fixed/flexible depending on their coverage, nature, period, and flexibility.
- The budgeting process involves assessing needs, developing a plan, implementing it with ongoing monitoring, and evaluating results periodically to allow for modifications.
- Formulating, reviewing
Budgeting is a process of looking at a business estimated incomes and expenditures over a specific period in the future. It allows a business to see if they will be able to continue operating at their expected level with these projected incomes and expenditures
Budgeting involves developing detailed plans for future operations and expenditures. There are various types of budgets classified by time period (long/short-term), function (sales, production, costs), and flexibility (fixed vs flexible). Key budgets include sales, production, costs, purchases, personnel, R&D, capital, and cash budgets. Budgetary control is the process of establishing responsibility center budgets, continuously comparing actual performance to budgets, and analyzing variances to help ensure objectives are met and inform future revisions if needed. It aids management in planning, coordination, and control.
Budgetary control is the process of comparing actual results to planned budgets in order to calculate variances and ensure maximum profitability. It involves preparing budgets, coordinating departments, and acting on performance results. A budget officer coordinates budgets across departments and informs management of deviations. Budget committees include department heads and are responsible for budget preparation and execution. Key factors that influence other budgets, like sales quantities, are identified. Budgetary control aims to maximize profits through planning, coordination, accountability, and correction of weaknesses.
- Budgeting is an operational plan for a defined period, usually a year, expressed in financial terms based on expected income and expenditures.
- The purposes of a budget include facilitating planning and decision making, recognizing controllable and uncontrollable costs, and allowing for feedback on utilization of funds.
- Key aspects of developing a budget include ensuring flexibility, synthesizing past, present and future factors, and gaining support from top management.
Budgetary control is a powerful management tool that involves establishing budgets relating to the responsibilities of executives and requirements of policies. It fixes targets in terms of money and relates to both management and accounting functions. The process involves forecasting planned events, comparing actual results to budgets, and revising budgets and policies based on deviations. It aims to assist management with planning, coordination, and control through clarifying objectives, delegating authority, and motivating performance.
Budgetary control is a powerful management tool that involves establishing budgets relating to the responsibilities of executives and requirements of policies. It assists management in planning, allocation of resources, and control. The document discusses key aspects of budgetary control including objectives, preparation, types (functional budgets for sales, production, etc.), and advantages like profit estimation and coordination. Challenges include opposition to the spirit of budgeting and adapting to changing economic conditions.
Budgetary control is a powerful management tool that involves establishing budgets relating to the responsibilities of executives and requirements of policies. It fixes targets in terms of money and relates to both management and accounting functions. The process involves forecasting planned events, preparing budgets for each accounting period and comparing actual results to budgets continuously to ensure objectives are met or to provide a basis for revising policies. Effective budgetary control requires clarifying objectives, delegating authority and responsibility, communicating changes, and motivating participation through the entire budget process.
This document discusses different types of budgets used in business. Budgets can be classified in several ways: by time (long-term vs short-term), by capacity (fixed vs flexible), and by scope (functional vs master). Functional budgets include sales, production, materials, purchase, and cash budgets. A master budget integrates all functional budgets to estimate profit/loss and financial position. Budgets can also be classified by receipts and expenditures as capital budgets or revenue budgets. In conclusion, budgets are prepared maps that aim to optimize resource utilization according to organizational policies and functions.
Here are the key steps to calculate the direct labor budget:
1. Determine the standard direct labor hours required per unit from production standards.
2. Calculate the total standard direct labor hours required for the total units to be produced:
- Total units to be produced x Standard direct labor hours per unit
3. Calculate the total budgeted direct labor cost:
- Total standard direct labor hours x Direct labor rate per hour
So using the information provided:
- Units to be produced: 3,700
- Standard direct labor hours per unit: 3 hours
- Total standard direct labor hours: 3,700 x 3 = 11,100 hours
- Direct labor rate: $7 per hour
- Total
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
2. CONCEPT OF BUDGET
The Chartered Institute of Management Accountants (CIMA) London, has defined a
budget as ‘a financial and/or quantitative statement, prepared prior to a defined period
of time, of the policy to be pursued during that period for the purpose of attaining a
given objective.’ It may include income, expenditure and employment of capital.
Characteristics
(a)
• A budget is primarily a planning device but it also serves as a basis for
performance evaluation and control.
(b)
• A budget is prepared either in money terms or in quantitative terms or in both.
(c)
• A budget is prepared for a definite future period.
(d)
• Purpose of a budget is to implement the policies formulated by management for
attaining the given objectives.
3. CONCEPT OF BUDGETARY CONTROL
Budgeting: The act of preparing budgets is called budgeting. In the words of J Batty, ‘the
entire process of preparing the budgets is known as budgeting.’
Concept of Budgetary Control: According to CIMA, London, ‘Budgetary control is the
establishment of budgets relating to the responsibilities of executives of a policy and the
continuous comparison of the actual with the budgeted results, either to secure by
individual action the objective of the policy or to provide a basis for its revision.’
Characteristics
(a)
• Establishment of budgets for each function/department of the organization.
(b)
• Comparison of actual performance with the budgets on a continuous basis.
(c)
• Analysis of variations of actual performance from that the budgeted performance to know the
reasons thereof.
(d)
• Taking suitable remedial action, where necessary.
(e)
• Revision of budgets in view of changes in conditions.
4. OBJECTIVES OF BUDGETARY CONTROL
• A budget provides a
detailed plan of action
for a business over a
definite period of
time.
Planning
• Budgeting aids
managers in co-
ordinating their efforts
so that objectives of
the organization.
Co-ordination
• A budget is a communication
device. It provides not only
adequate under- standing and
knowledge of the programmes and
policies to be followed but also
alerts about the restrictions to be
adhered to .
Communication
• A budget is a useful
device for motivating
managers to perform
in line with the
company objectives.
Motivation
• Control is necessary
to ensure that plans
and objectives as laid
down in the budgets
are being achieved.
Control
• A budget provides a useful
means of informing
managers how well they are
performing in meeting
targets they have previously
helped to set.
Performance
evaluation
5. ESSENTIALS OF EFFECTIVE
BUDGETING
Support of top
management
Participation
by responsible
executives
Reasonable
goals
Clearly defined
organization
Continuous
budget
education
Adequate
accounting
system
Constant
vigilance
Maximum
profits
Cost of the
system
Integration
with standard
costs
6. PRELIMINARIES IN THE INSTALLATION
OF BUDGET SYSTEM
• Budget centre is section of organization for which a budget is prepared.
Creation of budget centres
• System is designed to be able to record and analyse information required.
Introduction of adequate accounting records
• Organization chart should be prepared which shows the plan of organization.
Preparation of an organization chart
• In large concerns, the direction and execution of the budget is delegated to a
budget committee which reports directly to the top management.
Establishment of budget committee
• A budget manual has been defined by CIMA, London as ‘a document which
sets out the responsibilities for the persons engaged in the routine of and the
forms and records required for budgetary control.’
Preparation of budget manual
• Budget period is a length of time for which a budget is prepared and operated.
Budget period
• The key factor means the factor which limits the size of output.
Determination of the key factor
7. CLASSIFICATION OF BUDGETS
On the basis of
function and
scope:
Functional
budgets
Master
budget
On the basis of
flexibility:
Fixed
budget
Flexible
budget
8. FUNCTIONAL BUDGETS
A functional budget is one which relates to a particular function of the business.
Sales Budget: The sales budget is a statement of planned sales in terms of
quantity and value.
Production Budget: The production budget is a plan of production for the budget
period.
Production Cost Budget: This budget shows the estimated cost of production.
The production budget shows the quantities of production. These quantities of
production are expressed in terms of cost in production cost budget.
Raw Material Budget: This budget shows the estimated quantities of all the raw
materials and components needed for production demanded by the production
budget.
Purchase Budget: The purchase budget provides details of the purchases which
are planned to be made during the period to meet the needs of the business.
9. FUNCTIONAL BUDGETS(Contd.)
Labour Budget: Labour cost is classified into direct and indirect. Some companies prepare a
labour budget that includes both direct and indirect labour, while others include only direct
labour cost and include the indirect labour in the overhead cost budget.
Production Overheads Budget: The production overheads budget represents the forecast
of all the production overheads (fixed, variable and semi-variable) to be incurred during the
budget period.
Selling and Distribution Cost Budget: This is closely related to sales budget and
represents the forecast of all costs incurred in selling and distributing the company’s
products during the budget period.
Administration Cost Budget: This budget represents forecast of all administration
expenses, like directors’ fees, managing director’s salary, office lighting, heating and air
conditioning, etc.
Capital Expenditure Budget: This budget represents the expenditure on all fixed assets
during the budget period. It includes such items as new buildings, machinery, land and
intangible items like patents, etc.
Cash Budget: It is a detailed estimate of cash receipts from all sources and cash payments
for all purposes and the resultant cash balances during the budget period.
10. CASH BUDGET
It is a detailed estimate of cash receipts from all sources and cash payments for all
purposes and the resultant cash balances during the budget period.
Preparation of Cash Budget
• This method is usually used for short-term cash. The cash budget begins with the opening balance
of cash in hand and at bank. To this are added the cash receipts from various sources and from
this are deducted all payments of cash, whether on capital or revenue account. The resultant
figure is the closing cash balance.
Receipts
and
Payments
Method
• This method is suitable for long term cash forecast. It is based on the view that it is the
profit that is the source of cash in the business. The profit as per P&L accounts is converted into
cash figure by preparing an Adjusted Profit and Loss Account. All those items of income and
expenditure, which do not involve an inflow or outflow of cash, are adjusted in the forecasted
profit figure to arrive at the figure of cash made available by profit.
Adjusted
Profit and
Loss
Method
• This method is also used for forecasting cash requirements for long. Under this method budgeted
balance sheet is prepared with all items of assets and liabilities, excepting cash or bank balance.
The two sides of the balance sheet are then totalled and the balancing figure is taken as cash.
Balance
Sheet
Method
11. MASTER BUDGET
According to CIMA, London, ‘master budget is a summary budget incorporating its
component functional budgets and which is finally approved, adopted and employed.’
A master budget has two parts
(i) operating budget, i.e., budgeted profit and
loss account,
(ii) financial budget, i.e., budgeted balance
sheet.
The master budget is prepared by the budget director (or budget officer) and is
presented to the budget committee for approval. If approved, it is submitted to the Board of
Directors for final approval. The Board may make certain amendments/alterations
before it is finally approved.
12. FIXED AND FLEXIBLE BUDGETS
Fixed Budget: A fixed budget is one which is prepared keeping in mind one level of output.
It is defined as a budget ‘which is designed to remain unchanged irrespective of the level of
activity attained.’
Flexible Budget: In contrast to a fixed budget, a flexible budget is one ‘which is designed to
change in relation to the level of activity attained.’ The underlying principle of flexible
budget is that a budget is of little use unless cost and revenue are related to the actual
volume of production.
Distinction between Fixed and Flexible Budgets
Fixed budget assumes static
business conditions whereas
flexible budget is based on
the assumption of changing
business conditions.
Fixed budget is prepared for
only one level of activity but
flexible budgets may be
prepared for different capacity
levels or for any level of
activity.
Fixed budget figures are not
changed when actual level of
activity changes. But in
flexible budgets, the figures
are adjusted according to the
actual level of activity
attained.
When actual level of activity differs
from budgeted level of activity, then
in fixed budgets meaningful
comparison between actual and
budget figures is not possible. But in
flexible budgets, such comparisons
are quite realistic.
Under changing business
environments, fixed budgets have
very limited use for control. But
flexible budgets are very useful for
cost control and performance
evaluation under changing business
environments.
13. BUDGET REPORTS
Establishing budgets in itself is of no use unless there is a continuous flow of budget reports
showing comparison of actual and budget figures. Budget reports should be prepared at
regular intervals (say, every month) showing the reasons for the differences between actual
and budget figures.
Essentials of a Budget Report
(a) The budget reports should be simple and suitable for the level of understanding for the user.
(b) Reports should be presented promptly.
(c) Reports should be accurate but the extreme accuracy should not be at the cost of promptness.
(d) The principle of exception should be utilized, where possible.
(e) The reports should contain only essential information according to the needs of the user.
14. ZERO BASE BUDGETING (ZBB)
According to CIMA, London, ZBB is defined as ‘a method of budgeting whereby all
activities are revaluated each time a budget is set. Discrete levels of each activity are valued
and a combination chosen to match funds available.’
Main Features of Zero Base Budgeting (ZBB)
1. All budget items, both
old and newly proposed,
are considered totally
afresh
2. Amount to be spent on
each budget item is to be
totally justified
3. A detailed cost benefit
analysis of each budget
programme is undertaken
and each programme has
to compete for scarce
resources
4. Departmental
objectives are linked to
corporate goals
5. The main stress in not
on ‘how much’ a
department will spend but
on ‘why’ it needs to spend
6. Managers at all levels
participate in ZBB process
and they have
corresponding
accountabilities.
15. PERFORMANCE BUDGETING
Performance budgeting is a relatively new concept which focuses on functions, programmes
and activities. Performance budgets are established in such a manner that each item of
expenditure related to a specific responsibility centre is closely linked with the
performance of that centre.
Steps in Performance Budgeting
Establishment of responsibility centre Responsibility centres, a segment of an
organization where a manager is responsible for the performance are established.
Establishment of performance targets For each responsibility centre, targets are set
in terms of physical performance to be achieved.
Estimating financial requirements In this step, the financial support needed to
achieve the physical targets is estimated.
Comparison of actual with budgeted performance This is a usual step in
budgetary control to evaluate the actual performance.
Reporting and action Variances from budgeted performance are analysed and
reported for corrective action to be taken.