...report consists of an analysis of the company budget, identification of key variances and findings, and suggestions on operational changes. A description of the budget process will be presented to pinpoint variances and their causes. Based on these variances, operational changes will be suggested and explained while considering business ethics. Recommendations on particular component production as well as nonfinancial performance measures will be made and accompanied by supporting evidence. First, the following is a brief overview of the budget and budget process. Budgets are an indicator of the costs and revenues linked to each of the companies activities and a way of providing information and supporting mangement decisions throughout the year (Nobles et al., 2014). Budgeting requires managers to plan for the company’s future based on a formalized plan (Nobles et al., 2014). In order to begin this cyclical, formalized plan, companies must first establish their objectives (Nobles et al., 2014). Then the company formulates stratgies to achieve these objectives and creates a budget based on these strategies (Nobles et al., 2014). After the budget has been prepared, business operations (i.e. production, processing, etc.) begin and as financial periods end the results are compared to the initial budget (Nobles et al., 2014). Once the budgets are compared, the company can alter the existing strategy or develop an entire new one, and then continue on through the budget process (Nobles et...
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...Budget Management Analysis Budget management is an important concern for organizations, especially today with the economic strain on businesses. The strategies to manage budgets and possible variances will be addressed within the context of this paper. A comparison of five expense results with the budgetary expectations and reasons for possible variances will be presented. Benchmarking techniques that may improve budget accuracy in future forecasts will also be concentrated on within the body of information presented Managing a Budget within the Forecasts According to Finkler, Kovner, and Jones, (2007), organizations exercise control over operations through the use of a management control system. The determination of whether a business is able to appropriately budget for future expenses, economic downturns, and risks is critical in today’s economic crisis. The methods by which a budget is created are specific and take into consideration several factors that provide target, actual, and variance results. The strategies used to create a budget vary among industry, organization, department, and/or manager just to name a few. Budget variances, strategies, and benchmarking techniques are critical to the final budget formulated for a business. A budget is a way to assist managers to follow a set strategic plan to ensure resources are used to efficiently to achieve the goals and follow the mission of the organization. A budget provides estimates of revenue, expenditures...
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...Module 5 Assignment 2: Manufacturing Budget Analysis Budgets are used for two distinct purposes—planning and control. Planning includes developing goals and preparing various budgets to achieve those goals. Control includes gathering feedback to ensure that the plan is being properly executed or modified as business circumstances change. To be effective, a good budgeting system must provide for both planning and control. Good planning without effective control is a waste of time and effort (Garrison, Noreen, & Brewer, 2012, p. 336). Budgetary control is an important tool in business decision-making processes, but for Ferguson & Son, they have been using the control system inefficiently. Budgetary control should help corporate executives monitor expenses and adjust operations accordingly. For example, senior management may reduce expenses in one department and increase the budget of another business unit based on performance indicators. For the issues with Ferguson & Son, Tom Emory’s statement regarding not knowing if the accounting department’s reports would reflect a good or bad performance shows a lack of communication within the organization. It seems the accounting department and the business owners are not communicating well because the business owners are not being kept informed of how they are performing and accounting is unaware of the business reasons behind the expense fluctuations. This creates inefficiency in reporting and management may make...
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...Budget management analysis is commonly used by mangers as a tool helping to make sure that all resources in existence get put to use correctly. The budgets are determined annually because they are determined by the preceding year’s budget and differences. Budgets can be controlled by specific techniques to control budgets within prediction, consider five to seven expense results with budget anticipations, explain possible factors that cause fluctuations, present ways to keep results associated with goals, share three benchmarking strategies, and consider the ones that could increase budget accuracy, and give good reason for the choices made. (Finkler, 2007) Several techniques are often used to regulate budgets; managers as well as the chief financial officer of nearly all health related agencies provide the techniques necessary to manage the budget. By balancing the budget the institution will likely be better organized for the financial guidelines, which are the company’s upcoming expenses. A few techniques that can improve balancing the budget are zero based, activity based, performance based, cost fluctuations and benchmarking. Zero based budgeting examines each individual expense within a business and justifies the necessity and expense of each. Activity based pricing is the accumulation of the operating cost records, which is also assigned to individual programs which include engineering. The performance dashboard applies the metrics of functioning and examines the reason...
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...general, I think it is imperative to simply get in the habit of projecting a budget and to put it down in writing. I have made income statements and cash flow statements throughout my employment, but I have never found myself perpetually keeping track of a budget. More specifically, a conservative cash budget seems to have the greatest benefits. Rather than living optimistically, it is an additional safety net- when speaking in the realm of finance- to live in the negative. By that I mean, to project less and in the end have more, is better than to plan for optimal income and by possible variances have less. I realize that was a wordy sentence, so yet another way to say that is: it is better to under-promise and over-deliver. The cash budget is a great tool because it tracks your budget within the parameters of variation. It is a more fluid tool for personal finance. There are “good times” and “bad times” and the cash budget keeps numerical record of both so that we can use times of less income or more expense in concert with our greater financial goals....
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...M E M O R A N D U M TO: Gail B. Wright, DBA, CPA FROM: Sara Torocco and Rexhina Elezi RE: Federal Budget Proposals DATE: October 2, 2012 This memorandum analyzes the federal budget proposals currently being debated. Detailed information related to the components of budgets is also provided. Focusing mostly on the issue of Medicare, this memo identifies how Medicare will change in future years. The following compares and contrasts the overall budgets and Medicare budgets for each of the federal proposals, and also presents an argument against Congressman Ryan’s proposed Medicare budget. U.S “On-Budget” Surplus and Deficit Historical Data Presented below is the United States surplus and deficit data according to the historical tables provided by the Office of Management and Budget. * The United States on-budget has ran a deficit for the majority of the years between 1990 and 2011. * The years 1999 and 2000 both ran a surplus on-budget. * See chart no. 1, page 6. Federal Government “Off-Budget” Financing * Federally owned and operated entities that are off-budget do not affect the federal budget. The revenues and expenditures of these organizations are not included in the calculation of the federal deficit or surplus. * When the off-budget entities have a surplus, the Federal Government can borrow the money. The surplus in the Social Security Trust Funds is a large source of borrowing for the Federal Government (Penner, 2007)...
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...Summary Report Budget Items An in-depth analysis of the Year 9 budget reveals several budgetary items that raise concern. First and foremost, the anticipated units to be sold is 3510. This is due to management’s assumption that the declining market will rebound and improve slightly in the upcoming year. However, this forecast is not supported by past sales performance. In Year 8, there was a 16.3% decrease in cost of goods sold. Based solely on this statistic, one would assume a smaller increase or no increase at all in units sold during Year 9. It is unclear where the basis for the projected unit sales has come from and that is problematic. Another problematic area is the accounts receivable projected budget, which also assumes an increase from $609,960 in Year 8 to $639,694 in Year 9. Accounts receivable suffered a 15.0% loss between Years 7 and 8. Based on this number, it is difficult to understand why the company would assume a 10% increase in total accounts receivable in Year 9. There are few changes in Facility and General Operations Level expenses. The budget for advertising is increased from $27,428 to $28,412. I would recommend an even larger adjustment in the advertising budget, especially if the company is expecting to sell more bikes. In the past, advertising expenses have been positively correlated with company revenue. Between Year 6 and 7, advertising costs increased by 37.5% and net sales increased by 33%. However, between Year 7 and 8, advertising costs...
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...Budget Management Analysis for the Post Anesthesia Care Unit The budget management process is not an easy task. It is time consuming and difficult. There are some ways to overcome the challenge of managing budgets within forecasts. One way is to budget and report beyond the ledger. Data should be looked at beyond the company’s financial system. This will allow the company to create more accurate forecasts. Next the budget software should be user-friendly. If it is easy to use, the happier the employees are to use and understand it. Thirdly, the budget should have the options to incorporate a flexible financial model. Managers should be able to input information on how their particular department relates to other departments or functions. Next, the company must be able to adapt quickly to change because change is inevitable. The employees can respond to organizational, industrial, and global economic changes with re-forecasting or rolling forecasts. Improving collaboration between organizations, project teams, management, and department managers are another effective strategy to manage budgets within forecasts. Keep on task and submit tasks in a timely manner will help speed up the approval process. Last but not least always look to improve technology and software. One example would be cloud based software. This can decrease the cost for the company by decreasing the need for on-site IT infrastructure to maintain the information. My Manager is the Director of the entire Surgical...
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...Budgetary Analysis Heather Horning HCS/550 August 18, 2014 Elaine Bobo Budgetary Analysis The Medicaid program is one of the largest sources of health insurance in this country in addition to employer-based health insurance and Medicare. Medicaid delivers crucial medical related services to the most at risk populations in society. The importance of Medicaid's part in providing health insurance cannot be exaggerated; “the Medicaid program covers millions of low-income women, children, elderly people and individuals with disabilities” (U.S Department of Health and Human Services, 2000). Funding for Medicaid is limited through various federal policies, leaving much of the program’s budget burdened on the individual states to make necessary spending cuts in order to provide the funds needed for the demand of the program. Budgetary decisions need to be thoroughly reviewed before any immediate action is taken as these decisions can create a domino effect on other programs and their participants as sections of this paper will describe. Medicaid Overview Medicaid is a cooperative federal and state program with a common goal to provide a vital service for the general public. “Medicaid is the largest source of federal revenue for states. Medicaid funds support health care providers, jobs and state economies overall” (Kaiser Family Foundation, 2013). Every state institutes its own eligibility criteria, benefits platform, payment rates and program organization under the broad federal recommendations...
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...Budget The proposed total budget allocated for the digitisation project is which will be distributed across total duration of 34 weeks. The budget is consumed aggressively in week 5 and week 9 of the project. The total hardware and software cost is 67,331.90 AUD, which is further broken down in details under the resources sheet in the budget delivered with the project. The total labour cost which includes the contractors and HP- SME is 65,160.00 AUD. This cost includes the amount that must be paid to the employment agency as well. Other payments categorised as miscellaneous will be 16,296.00 AUD. All suppliers will be asked to send official invoices with each deliverable separately, which will be collected by the IT engineer and project manager upon arrival. Then the IT engineer will compare the invoice content to the actual delivery, and then will be compared to the purchase order by the project manager. All invoices will be handed to the project manager and each invoice will be sent to the department’s accountant to be given a code of project name and numeric extension according to general ledger system, then the project manager will mark each item in the budget with a corresponding invoice code to acknowledge it. Project manager will be summing the total of the received invoices and comparing it to PO in weekly basis, any deviation should be communicated to sponsor timely with justification. The project manager will be giving a notification to the finance department on...
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...FT 6202: Management Science (2012-2013) Class 1: Introduction to Transportation Problem Re-cap of linear programming, Classic transportation problem, LP formulation, Solution using MS Excel Text: BRS 5.1, 5.2, 5.3 Class 2: Transportation Problem (cont.) Basic feasible solution of TP, properties, Analysis of Excel output, Sensitivity analysis Text: BRS 5.1, 5.2, 5.3 Class 3: Transshipment problem Formulation of LP model, different variations (unbalanced case, combining with production scheduling, multi-modal and multi-SKU transportation), Conversion of transshipment model into classic transportation model. Text: BRS 5.4, 5.5 Class 4: Assignment problem Binary ILP formulation, solution by Hungarian method Text: BRS 5.6 Class 5: Network models Shortest path problem, Minimal spanning tree Text: BRS 5.8, 5.9 Class 6: Game theory Introduction to game theory: Types of game, Two person zero-sum game, concept of saddle point, dominance rule Text: WW 14.1, 14.2 Class 7: Game theory (contd.) Mixed startegy, Linear programming formulation Text: WW 14.2, 14.3 Class 8: Mid-term Test Class 9: Markov chain Introduction to stochastic processes, markov chains, transition probability matrix, steadystate probabilities. Text: Handouts and WW 17.1, 17.2, 17.3 Class 10: Decision theory Decision making under uncertainty, Decision criteria, Decision Tree Text: BRs 8.1, 8.2, 8.3, 8.4, 8.6 Class 11: Decision theory (contd.) Decision making under risk, EVPI, EVSI Text: 8.5, 8.8, 8.9 Class 12: Travelling...
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...Budget Management Analysis HCS/571 Financial Resource Management June 27, 2011 Dr. Lena Watson Budget Management Analysis Budget management analysis is used by mangers as a tool and helps determine that all resources available are being used efficiently. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss specific strategies to manage budgets within forecast, compare five to seven expense results with budget expectations, describe possible reasons for variances, give strategies to keep results aligned with expectations, recommend three benchmarking techniques, and identify those that might improve budget accuracy, and justify the choices made. Strategies to Manage Budgets Many strategies may be used to control budgets; managers and the chief financial officer of most healthcare organizations have the tools needed to manage the budget. By managing the budget the organization will be better prepared for the financial forecasts, which are the company’s future expenses. Some strategies and tools that will assist with managing the budget are zero based, activity based, performance based, cost variances and benchmarking. Zero based budgeting analyzes every expense within an organization and justifies the need and cost of each. Activity based costing is the gathering of the operating cost data, which is assigned to specific activities such as engineering. The performance dashboard uses the metrics of performance...
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...CAFR BUDGET ANALYSIS 2 CAFR Budget Analysis The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) serve similar functions for different accounting entities. The GASB maintains accountability over state and local governments, while the FASB maintains adherence to standards for not-for-profit entities. Both governments and not-for-profit organizations use an expenditure approach to accounting where budgetary needs are the first priority over financial statements. Governments however, have additional reporting items that fall within the purview of the power to summon resources. Governments and not-for-profit entities have a different business model than that of for-profit organizations, because governments and not-for-profit entities primary business goal is something other than profit. Governments differentiate themselves from not-for-profit entities by the ability to use taxes, licenses, and legislature as a means to levy revenue to pay for expenses. Not-for-profit organizations primarily use grants, investments, and contracts to earn revenue (Copley & Engstrom, 2007). Modified Accrual Method Since governments and not-for-profit organizations use a different business model than traditional businesses, a modified accrual method is used to account for assets, liabilities, and capital. The GASB and FASB allow for the creation of individual accounting entities called funds that track the funding and expenses for that entity. Each...
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...Rafsan Mahtab ID: 16-087 Here I have included the proposition and analysis of indirect taxes for the budget FY: 2009/10 Proposition Currently in our country a big portion of tax revenue is earned by import duty which constitutes nearly 42% of the total tax revenue. Because of the ongoing current global recession it is suspected that the revenue from this sector may go down. In this year’s budget a change has brought in the import tariff in certain areas to protect our local industries and retain our export market. Some measures has been proposed which are: 1. A reduction in the in the duty on basic raw materials from 7% to 5% to make our local industry more competitive both in local and international market. 2. Agricultural sector has been declared as the top priority sector and the continuation with the zero tariff on imports of fertilizer, seeds and major food grains. Along with medicine and raw cotton .withdraw VAT on the imports of raw materials to produce pesticides has been proposed to keep pesticides easily available for farmers. 3. Increasing supplementary duty on the imports of luxury vehicles and restructuring of duty slabs has been proposed to augment revenue collection and to discourage imports of luxury vehicles. 4. In order to offer exemption from supplementary duty against import of hybrid motorcars, which is fuel efficient, it is proposed to create a new HS code for separate classification. 5. To enable importation of durable...
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...Immigration and Healthcare Cost Angela Mporampora Metropolitan State College of Denver Healthcare Finance HCM 4030 Professor kelvin D. Zeller March 25, 2012 Immigration and healthcare cost Abstract. The rise in healthcare cost has been one of the most troubling economic events in recent years. Healthcare cost rises about 7.5 percent every year. The United States is known to be the nation with the highest amount spent on healthcare. Some research links immigrants to the fast paste in healthcare cost increase. Immigration became a top issue after the event of September 11th. Many believes immigration is the root cause of most of the economic problems taking place in the country today, they linked immigration to increase in healthcare cost, increase in crime rate, reason for low productivity, reason for loss of job opportunity for native- born and many more. But on the other hand, are these groups of individuals who believe immigrants are being used as “scapegoats” just because they don’t have a voice or stand in the society. They stressed the believe that even before immigration became a hot topic, the economy already had this problem in place, they denoted most research findings stating data were manipulated to support their mission; for immigrant do not visit medical establishment as often as indigenes and wonder how researchers came to the conclusion that immigrants spiked up healthcare cost. This subject is distinctly two sides and it’s difficult to find...
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