This Presentation is based on Horngren Book 16th edition question answer which is presented on the management accounting courses by Group 7. So, we are very delight to get such opportunity.
Indian cold beverage (Porter Five Forces Analysis)Sumeet Pareek
Analysis of Soft drink/Beverages market attractiveness using Porter's five forces. It mainly deals with the most important factors associated with market attractiveness and how regional players affected the monopoly of PepsiCo & Coca Cola.
This is a hypothetical case given by Harvard Business School about Brannigan Foods and the challenges it is currently facing.
In the end, a decision needs to be taken as to what should be the decision of the company.
The case can be found found online.
Case Analysis " How Philips Nearly Went Bankrupt"khairul Bashar
Netherlands-based Royal Philips Electronics (Philips) is a leading global manufacturer and marketer of consumer electronic products. The company was adept at technological innovations but was largely unsuccessful in translating its technological prowess into marketing success.
The case details the reasons behind this shortcoming and gives an account of the various restructuring exercises undertaken by the successive Presidents of Philips to set things right at the company. The case discusses in length a major restructuring program called 'Towards One Philips'and describes how it aimed at finding a lasting solution to Philips ‘problems. An account of the company's new approach to strategy setting, called 'Strategic Conversations, ‘is also presented along with the rationale for such an approach. Finally, the case presents the benefits accrued to the company as a result of its restructuring exercises.
At the very beginning of the report, I try to find out the fault or the wrong steps Philips have taken so that from a leading company their business nearly went bankrupt. After that I have discussed the initiative that has been taken by Philips so that they can overcome the challenge from the case studies perspective I also suggest my view regarding their contingency plan and what could be doing more, finally, I have shared my learning and try to integrate that with our countries business perspective.
Indian cold beverage (Porter Five Forces Analysis)Sumeet Pareek
Analysis of Soft drink/Beverages market attractiveness using Porter's five forces. It mainly deals with the most important factors associated with market attractiveness and how regional players affected the monopoly of PepsiCo & Coca Cola.
This is a hypothetical case given by Harvard Business School about Brannigan Foods and the challenges it is currently facing.
In the end, a decision needs to be taken as to what should be the decision of the company.
The case can be found found online.
Case Analysis " How Philips Nearly Went Bankrupt"khairul Bashar
Netherlands-based Royal Philips Electronics (Philips) is a leading global manufacturer and marketer of consumer electronic products. The company was adept at technological innovations but was largely unsuccessful in translating its technological prowess into marketing success.
The case details the reasons behind this shortcoming and gives an account of the various restructuring exercises undertaken by the successive Presidents of Philips to set things right at the company. The case discusses in length a major restructuring program called 'Towards One Philips'and describes how it aimed at finding a lasting solution to Philips ‘problems. An account of the company's new approach to strategy setting, called 'Strategic Conversations, ‘is also presented along with the rationale for such an approach. Finally, the case presents the benefits accrued to the company as a result of its restructuring exercises.
At the very beginning of the report, I try to find out the fault or the wrong steps Philips have taken so that from a leading company their business nearly went bankrupt. After that I have discussed the initiative that has been taken by Philips so that they can overcome the challenge from the case studies perspective I also suggest my view regarding their contingency plan and what could be doing more, finally, I have shared my learning and try to integrate that with our countries business perspective.
Un'azienda italiana sempre più protagonista del mondo! Nella seguente presentazione vengono illustrate le principali strategie di Marketing del gruppo, focalizzando l’attenzione su due ambiti di business: le acque minerali e la ristorazione.
San Benedetto, gruppo leader di mercato e multichannel Company, si conferma nel 2019 in Italia l’azienda con la Brand Reputation più alta nel settore «Non-alcoholic Beverage».
MarkStrat is a simulation where students can excercise with KPIs (Key Performance Indicators), through multiple decision rounds. Unlike other types of decision, simulated in this game, R&D requires more time to seize the effects of the decision. It also requires to look into the structure of the product (its features), as related to projected desires of market segments, as configured by Market Research. Then, there is a technical part to handle, for the input of the decions in the simulation platform.
If you have trouble with the R&D dimension of MarkStrat simulation (MBA programmes), this presentation may help you. It summarizes the concepts mobilised by the simulation and provides some simple steps to do it.
How should a company choose the most attractive target markets?Sameer Mathur
Based on Chapter 7 Kotler
Marketing Management : A South Asian Perspective 14th Edition (English) 14th Edition
How should a company choose the most attractive target markets?
IKEA - Brand Management
An Overview of what is in the IKEA store as you turn the pages. . .
Intro
Origin & Genesis
History & Last Decade
Business !dea
Structure and Corporate Management
Brand Portfolio with STP and Consumer Activations
IKEA and inter-market segmentation
4Ps & core competency
AD agencies and Strategic Brand Campaigns
Market Environment (Sectoral and Industrial Analysis)
IKEA value chain
PEST analysis
Porter's 6 forces
S.W.O.T.
TOWS metrics
Competitor Analysis
Industry Analysis
Costing and Pricing analysis of brand portfolio
Consumer Behavior & Brand Ambassadors
Brand repositioning campaigns
Rationalized improvement plan
Future of IKEA
Alternate options for IKEA
IKEA Trivia
IKEA Advertisements all over and AugmentedReality/QR content
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
S&A Knowledge Series - Budget & budgetary controlsDhruv Seth
In continuation of our knowledge series please find attached an update on "Budgets and Budgetary Controls".
In light of the current humanitarian and possible economic turmoil, it becomes imperative for us to have an effective budget and controls for the same. This would ensure we stick to our expenses envisaged at the start of the year and exercise great control over our costs.
Un'azienda italiana sempre più protagonista del mondo! Nella seguente presentazione vengono illustrate le principali strategie di Marketing del gruppo, focalizzando l’attenzione su due ambiti di business: le acque minerali e la ristorazione.
San Benedetto, gruppo leader di mercato e multichannel Company, si conferma nel 2019 in Italia l’azienda con la Brand Reputation più alta nel settore «Non-alcoholic Beverage».
MarkStrat is a simulation where students can excercise with KPIs (Key Performance Indicators), through multiple decision rounds. Unlike other types of decision, simulated in this game, R&D requires more time to seize the effects of the decision. It also requires to look into the structure of the product (its features), as related to projected desires of market segments, as configured by Market Research. Then, there is a technical part to handle, for the input of the decions in the simulation platform.
If you have trouble with the R&D dimension of MarkStrat simulation (MBA programmes), this presentation may help you. It summarizes the concepts mobilised by the simulation and provides some simple steps to do it.
How should a company choose the most attractive target markets?Sameer Mathur
Based on Chapter 7 Kotler
Marketing Management : A South Asian Perspective 14th Edition (English) 14th Edition
How should a company choose the most attractive target markets?
IKEA - Brand Management
An Overview of what is in the IKEA store as you turn the pages. . .
Intro
Origin & Genesis
History & Last Decade
Business !dea
Structure and Corporate Management
Brand Portfolio with STP and Consumer Activations
IKEA and inter-market segmentation
4Ps & core competency
AD agencies and Strategic Brand Campaigns
Market Environment (Sectoral and Industrial Analysis)
IKEA value chain
PEST analysis
Porter's 6 forces
S.W.O.T.
TOWS metrics
Competitor Analysis
Industry Analysis
Costing and Pricing analysis of brand portfolio
Consumer Behavior & Brand Ambassadors
Brand repositioning campaigns
Rationalized improvement plan
Future of IKEA
Alternate options for IKEA
IKEA Trivia
IKEA Advertisements all over and AugmentedReality/QR content
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
S&A Knowledge Series - Budget & budgetary controlsDhruv Seth
In continuation of our knowledge series please find attached an update on "Budgets and Budgetary Controls".
In light of the current humanitarian and possible economic turmoil, it becomes imperative for us to have an effective budget and controls for the same. This would ensure we stick to our expenses envisaged at the start of the year and exercise great control over our costs.
The Advantages of Budgeting A budget is a document that fo.docxtodd801
The Advantages of Budgeting
A budget is a document that forecasts the financial results and financial position of a business for
one or more future periods. At a minimum, a budget contains an estimated income statement that
describes anticipated financial results. A more complex budget also contains an estimated
balance sheet, which contains the entity’s anticipated assets, liabilities, and equity positions at
various points in time in the future.
A prime use of the budget is to serve as a performance baseline for the measurement of actual
results. Budgets may also be linked to bonus plans in order to direct the activities of various
company employees. A budget may also be used for both tax planning and treasury planning.
Despite these valid uses, there are also a number of problems with budgeting that have given rise
to a movement dedicated to the elimination of budgets.
Budgeting has been with us a long time, and is used by nearly every large company. They would
not do so if there were not some perceived advantages to budgeting. These advantages include:
▪ Planning orientation. The process of creating a budget takes management away from its
short-term, day-to-day management of a business and forces it to think longer-term. This is
the chief goal of budgeting, even if management does not succeed in meeting its goals as
outlined in the budget – at least it is thinking about the company’s competitive and
financial position and how to improve it.
▪ Model scenarios. If a company is faced with a number of possible paths down which it can
travel, you can create a set of budgets, each based on different scenarios, to estimate the
financial results of each strategic direction.
▪ Profitability review. It is easy to lose sight of where a company is making most of its
money, during the scramble of day-to-day management. A properly structured budget
points out which aspects of a business generate cash and which ones use it, which forces
management to consider whether it should drop some parts of the business or expand in
others. However, this advantage only applies to a budget sufficiently detailed to describe
profits at the product, product line, or business unit level.
▪ Assumptions review. The budgeting process forces management to think about why the
company is in business, as well as its key assumptions about its business environment. A
periodic re-evaluation of these issues may result in altered assumptions, which may in turn
alter the way in which management decides to operate the business.
▪ Performance evaluations. Senior management can tie bonuses or other incentives to how
employees perform in comparison to the budget. The accounting department then creates
budget versus actual reports to give employees feedback regarding how they are
progressing toward their goals. This approach is most common with financial goals,
though operational goals (such as reducing the scrap rat.
A Scalable And Profitable Model- Nbfc Business PlanEnterslice
The business plan is crucial since it lays out the company's strategy. It aids in the achievement of the company's short- and long-term objectives. It expresses the company's vision, mission, and financial objectives clearly. It also aids in prioritising actions that require regular review by the company's senior management. An executive summary, vision, mission, business structure, promoter background, market size, growth aspect, product & service, sales & marketing, and other items are included in an NBFC business plan.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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).
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
2. List of Group Members
Ratika Hossain, 19-022
Anika Mahmud, 19-024
Umma Hania, 19025
Rifat Bin Tarek, 19-027
Md. Ashiqul Islam Badhan, 19-065
3. Question 7-1
What are the major benefits of budgeting?
Answer
1. Opportunity for managers to reevaluate existing activities and evaluate possible
new activities
2. Compels managers to think ahead by formalizing their responsibilities for
planning,
3. Aids managers in communicating objectives to units and coordinating actions
across the organization
4. provides benchmarks to evaluate subsequent performance.
4. Question 7-2
Is budgeting used primarily for scorekeeping , attention directing, or problem solving?
Answer
Budgeting is primarily attention directing because it helps managers to focus on
operating or financial problems early enough for effective planning or action.
5. Question 7-3
Answer
Strategic planning covers no specific time period, is quite general, and often is not
built around financial statements.
Long-range planning usually has a 5- or 10-year horizon and consists of financial
statements without much detail.
Budgeting usually has a horizon of one year or less, and consists of financial
statements with much detail.
How do strategic planning, long-range planning, and budgeting differ?
6. Question 7-4
Answer
-Continuous budgets add a month in the future when the month ended is dropped.
-The continuous budget provides a continually updated budget looking twelve months ahead.
-When the new month (or quarter) is added, the budget for the remainder of the current year
may also be revised.
-When companies revise the budgets for the remainder of the current year, they usually
compare subsequent results to the original budget in addition to comparing them to the latest
revised budget.
“I oppose continuous budgets because they provide a moving target. Managers
never know at what to aim.” Discuss.
7. Question 7-5
Answer
-If the measures used to reward employees in the performance evaluation system are
not aligned with the goals of the company
-The incentives from the evaluation system may lead employees to take actions that
conflict with the interests of the company.
Why is it important to align performance goals of the company and the system
used to evaluate and reward employees?
9. Question 7-6
Explain the cycle of bias by lower-level managers and bias-adjustment by upper-
level managers that can spiral out of control and result in meaningless budget?
Answer
Lower-level managers bias their forecasts to create budgetary slack or padding .
Upper-level managers adjust for this bias in creating a revised budget .Therefore ,
lower-level managers introduce additional bias to complete for the adjustment that will
be made by upper-level managers introduce additional adjustments for the additional
bias. This cycle can quickly destroy the potential benefits of budget.
10. Question 7-7
What are the incentives for inappropriate behaviors to increase reported profit when
it appears that profits are likely to fall just short of a manager’s target?
Answer
A manager may make short run decisions to increase profits that are not in the
company’s best long-run interests such as offering customers excessively favorable
credit terms or cutting discretionary expenditures such as R & D and advertising,
trading future sales for current profits. In the extreme, the manager might choose to
falsely report inflated profits
11. Question 7-8
Why is there an incentive for a manager to inappropriately reduce reported profit
when it appears that profits are likely to be above the upper limit of a manager’s
bonus range?
Answer
a) by moving this year’s sale into next year or moving next year’s expenses into this year
, the manager ensures a higher level of reported profit(and probably a higher bonus)
next year.
b) by decreasing this year’s income, the manager avoids ratcheting up of performance
expectations in setting the bonus target for the next year
12. Question 7-9
Why is budgeted performance better than past performance as a basis for judging
actual results?
Answer
Budgeted performance is better than past performance as a basis for judging current
performance because the budget contains no hidden inefficiencies and can be founded
on current rather than past economic conditions.
13. Question 7-10
“Budgets are okay in relatively certain environments . But everything changes so quickly
in the electronics industry that budgeting is a waste of time ”. Comment on this
statement.
Answer
Budgets are specially important in environments that are rapidly changing. They force
managers to look forward and plan for change . Budget force analysis the factors that
are bringing about the changes.
15. Question 7-11
“Budgeting is an unnecessary burden on many managers. It takes time away from
important day-to-day problems.” Do you agree? Explain.
Answer
I do not agree with the statement because I think budgeting is definitely necessary for
the long-term success of any business. When budgeting in done correctly, it is an
important aid to managers. Managers need time to plan and co-ordinate their various
activities. Budgeting forces them to take time from the day-to-day problems and focus
on longer-term issues.
.
16. Question 7-12
Why is the sales forecast the starting point for budgeting?
Answer
• Sales forecast is a forecast of firm's future sales both in terms of volume and value.
• Sales forecasting serves as the starting point for all activities of the firm and gives direction
to all activities. It helps the firm to decide which produces are to be continued, which ones
are to be dropped, which ones are to be added and which need modification. All other
operating activities of the company are affected by the volume of sales.
17. Question 7-13
What factors influences the sales forecast?
Answer
• The sales forecast is influenced by some factors. They are-
• Past patterns of sales,
• Estimates made by the sales force,
• General economic conditions,
• Competitors' actions,
• Changes in prices,
• Market research studies, and
• Advertising and sales promotion plans.
19. 7-1 What are the major benefits of budgeting?
1. Opportunity for managers to reevaluate existing
activities and evaluate possible new activities
20. Cont…..7-1 What are the major benefits of budgeting?
2. Compels managers to think ahead by formalizing their responsibilities for
planning,
21. Cont…..7-1 What are the major benefits of budgeting?
3. Aids managers in communicating objectives to units and coordinating actions
across the organization
22. Cont…..7-1 What are the major benefits of budgeting?
4. provides benchmarks to evaluate subsequent performance.
23. 7-2 Is budgeting used primarily for scorekeeping,
attention directing, or problem solving?
Budgeting is primarily attention directing because it
helps managers to focus on operating or financial
problems early enough for effective planning or
action.
24. 7-3 How do strategic planning, long-range planning,
and budgeting differ?
Strategic planning covers no specific time period, is quite general, and often is not
built around financial statements.
Long-range planning usually has a 5- or 10-year horizon and consists of financial
statements without much detail.
Budgeting usually has a horizon of one year or less, and consists of financial
statements with much detail.
25. 7-4 “I oppose continuous budgets because they provide a moving target. Managers
never know at what to aim.” Discuss.
• Continuous budgets add a month in the future when the month ended is
dropped.
• the continuous budget provides a continually updated budget looking twelve
months ahead.
• When the new month (or quarter) is added, the budget for the remainder of the
current year may also be revised.
• When companies revise the budgets for the remainder of the current year, they
usually compare subsequent results to the original budget in addition to
comparing them to the latest revised budget.
26. 7-5 Why is it important to align performance
goals of the company and the system used to
evaluate and reward employees?
If the measures used to reward employees in the
performance evaluation system are not aligned with
the goals of the company
27. The incentives from the evaluation system may lead employees to take actions that
conflict with the interests of the company.
29. Question 7-14
Differentiate between operating budget and financial budget?
Answer
No. When budgeting in done correctly, it is an important aid to
managers. Managers need time to plan and coordinate their various
activities. Budgeting forces them to take time from the day-to-day
problems and focus on longer-term issues
30. Question 7-15
Distinguish between operating expenses and disbursements for operating expenses
Answer
Operating expenses are costs charged to the income statement
in a particular period. And Cash disbursements for these
operating expenses may fall in a previous period (assets
purchased in one period and depreciated over future periods)
or in a future
31. Question 7-16
Answer
A cash budget is an attempt to monitor and regulate the flow of cash
in optimum fashion.
What is the principal objective of cash budget
33. Question 7-17
Answer
Budgeting will be effective only if it is accepted by those managers who are
responsible for controlling costs. Since their performance will be measured against the
budget, they must be educated in the assumptions underlying the budget and
convinced of its objectivity and relevance.
“Education and salesmanship are key features of budgeting”
Explain
34. Question 7-18
Answer
Both functional and activity-based master budgets begin with the forecasted demand
for products or services. However, whereas functional budgets then determine the
inventory, materials, labor, and overhead budgets, the activity-based budget focuses
on determining the demand for key activities.
What are the main differences between functional and
Activity-Based-Budgets
35. Question 7-19
Answer
No. Financial planning models are mathematical statements of the relationships in the organization
among all the operating and financial activities and of other major internal and external factors that
may affect the financial results of decisions. But financial planning models are only as good as the
assumptions and inputs used to build them. Managers must understand the models to provide
appropriate assumptions and inputs. If managers do not understand budgeting, using financial
planning models can result in GIGO (Garbage in, Garbage out).
“Financial Planning modes guide managers through the budget process so that
managers do not really need to understand budgeting “ Do you agree?