...Abstract Financial planning and budgeting has become a powerful tool of any company’s financial management. Planning and budgeting is an issue that should be solved in a complex. Therefore, this final English research paper highlights three main approaches absorbed: theoretical, practical, and analytical. Theoretical knowledge cannot be applied to practice without clear understanding of business, a feeling about the actual circumstances. Practical knowledge cannot be applied to professional tasks without analytical approach. This skills and approaches are presented and proven in this research. Having faced planning and budgeting process of middle-sized company, it has been noted that some issues of this important activity absence clarity, confidence, and flexibility. In order to optimize planning and budgeting process a thorough examination has been prepared in this research paper. The Company where experience has taken place is Levi’s XX that stands for Levi’s Vintage Clothing. Therefore, the industry examined is apparel, and as a market is taken the whole Globe. Table of Contents Abstract 2 Introduction 4 • The purpose of the study 4 • The main conceptual problem 5 Methodology 6 1. Essence and role of financial planning and budgeting 7 1.1 Planning and budgeting role in company’s structure 7 1.2 Purpose of budgeting 7 2. Company profile, industry and market description 10 2.1 Levi’s XX story 10 2.2 Company’s structure 10 3. Principles and objectives...
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...study According to JeremyVohwinkle, college students face many hard financial decisions. As s young adult they need to figure out how to pay for college and earn some money spending. This is important for anyone, so no surprise and wonder that a lot of college students end up making a lot of debt and costly making mistakes. Unfortunately, these mistakes can actually damage and provide a lot of burden for the students for a long time, these students need to have basic financial planning in order to prevent something bad happen in the future. The lists of variables that have been brought up are lack of knowledge in personal finance in terms of budgeting capabilities, lifestyle of students which is based on spending and alsostudent background in personal finance which based on parent’s profile/ income. This list of independent variables will be measured based on the relationship between the levels of financial awareness among Islamic Banking students UiTMKotaBharu. Therefore, the needs of awareness on financial planning is vital due to the fact that it will determine on whether the students will have a burden in terms of debt in the future. 1.2 Problem statement Although the Islamic Banking students UiTM Kota Bharu learn the subject regarding the financial but the students still have a low awareness regarding financial planning. On top of that, without having an effective financial planning program, theIslamic Banking students UiTM...
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...Excellence in Financial Management Course 2: Financial Planning and Forecasting Prepared by: Matt H. Evans, CPA, CMA, CFM This course provides a basic understanding of how to prepare a financial plan (budgeted financial statements). This course will also discuss some of the problems associated with budgeting along with "best practices" in budgeting. This course is recommended for 2 hours of Continuing Professional Education. In order to receive credit, you will need to pass a multiple choice exam which is administered over the internet at www.exinfm.com/training Revised March 2000 Chapter 1 The First Steps Introduction Financial planning is a continuous process of directing and allocating financial resources to meet strategic goals and objectives. The output from financial planning takes the form of budgets. The most widely used form of budgets is Pro Forma or Budgeted Financial Statements. The foundation for Budgeted Financial Statements is Detail Budgets. Detail Budgets include sales forecasts, production forecasts, and other estimates in support of the Financial Plan. Collectively, all of these budgets are referred to as the Master Budget. We can also break financial planning down into planning for operations and planning for financing. Operating people focus on sales and production while financial planners are interested in how to finance the operations. Therefore, we can have an Operating Plan and a Financial Plan. However...
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...MODULE 7: FINANCIAL ASPECTS OF EDUCATIONAL PLANNING BUDGETNG: its IMPLICATIONS TO EDUCATIONAL PLANNING A national budget indicates, in terms of manpower, money, machines and materials, the country’s total resources to be utilized for various activities during a specified period. It is scrutinized by the country’s legislature; it becomes a piece of legislation when the legislature approves its adoption. The annual budget of an educational institution is approved by the institution’s governing board. The approved budget becomes the legal authority by virtue of which executives, agency heads or administrators can initiate or carry out activities designed to achieve organizational objectives. What is Budgeting? Budgeting is the process of systematically relating expenditure to achieve planned goals and objectives. It follows five phases and has three major functions. The phases of budgeting are as follows: Phase I – identification of programs/projects/activities to be accomplished during the budget period; Phase II – identification of resources in terms of manpower, money, machines and materials; Phase III – costing of resources, which is the most important activity in budgeting since the budget is fundamentally a financial statement; Phase IV – presentation of the budget in accordance with guidelines periodically issued by the proper authority, e.g., the Department of Budget and Management in the case of the Philippines; and Phase V – obtaining the...
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... Describe the advantages of budgets 3. Prepare the operating budget and its supporting schedules 4. Use computer-based financial planning models in sensitivity analysis 5. Explain kaizen budgeting and how it is used for cost management 6. Prepare an activity-based budget 7. Describe responsibility centers and responsibility accounting 8. Explain how controllability relates to responsibility accounting II. CHAPTER SYNOPSIS Chapter 6 introduces the important topic of budgets. Budgets are the primary financial planning tool used by businesses. The chapter explains how businesses use budgets and budgeting as part of the management process. The concept of responsibility centers and responsibility accounting is also discussed and related to the concept of controllability. III. CHAPTER OUTLINE Budgets represent in financial and nonfinancial terms the plans of a business for a specified period of time. Financial budgets are, in essence, financial statements that report expected or proposed future activity instead of what has already occurred. Supporting these financial budgets are nonfinancial budgets that report expected or proposed future activity in areas such as number of employees, new products developed, and number of units produced or sold. (Exhibit 6-1 illustrates the link among strategy, planning, and budgets.) Do Chapter Quizzes # 1 and 2. Assign Problem 6-31. Budgets are an important part of a well-designed...
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...University of St. Marks and St. Johns MBA 621 Financial and Managerial Accounting Assignment 2: “Budgeting” Students Name: Md. Bazlul Karim Students ID: R1404D113105 Contents Introduction: 3 Question-1 3 Budgeting: 3 Strategic Planning: 3 Differences among Long Range Planning, Strategic Planning and Budgeting 4 Is Budgeted performance better than past performance as a basis for judging actual results? 4 The benefits of budgeting: 4 Is budgeting an unnecessary burden for day to day problems? 4 Sales forecasting: 5 Spreadsheets as an aid in the application of sensitivity analysis: 5 Question-2 6 Comments about budget: 6 1. Sales Budget: 7 2. Cash Budget: 7 3. Debtors Budget: 8 4. Creditors Budget: 8 5. Production Cost Budget: 9 6. Raw Materials and finished goods Budget: 9 7. Profit and Loss Account Budget 10 8. Balance Sheet Budget 10 Conclusion: 11 References: 13 Introduction: Budgeting is a process that is necessary not only for planning but also for controlling. It plays a major role in the management of any organization. Basically, budgeting is the key point of planning. And without budget, controlling of an organization is not possible. This assignment is emphasized different important tools regarding budgeting. And lastly a budget is given. Question-1 Budgeting: Budgeting is a process that is necessary not only for planning but also for controlling. Basically budgeting is an expression with quantitative numbers that...
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...PLC. BY: AMALOKWU OBIAJULUM JOHN LAWRENCE NJILEFACK NGOASONG ABSTRACT Date Level Authors : : : June, 2008. Master Thesis EF0705, 10 points (15credits) Amalokwu Obiajulum John (820821) Lawrence Njilefack Ngoasong (770901) Title : Budgetary and Management control Process in a Manufacturing Organization. Roland Almqvist. What is the budgeting practice in the Nigerian Manufacturing companies? The aim of this study is to investigate the management control practice (budget being the tool for management control) in Guinness Nigeria Plc and to suggest what seems to us the most appropriate practice based on findings from literatures and empirics Supervisor: Problem Purpose : : Method : The study was described based on a qualitative approach. Furthermore, we described why we chose the company, sources of literature, techniques employed in data collection (primary data), research purpose, data analysis as well as critiques to the method use. Conclusion : The Integration of strategic Management and Budgeting enhances competitiveness which when attained is translated as high performance. Keywords : Management Control, Budgeting, strategy, High performance and Competitive advantage. ACKNOWLEDGEMENT Firstly we give thanks to God Almighty for the strength to work on this research. This work could not have materialized without the assistance of certain people who contributed to its success. Our special gratitude goes to Leif linnskog for his wonderful assistance...
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...evaluate the key different types of budgeting within a business as well as the importance of why businesses must keep their costs under control. Firstly it will examine key types of planning and budgeting along with how they are interconnected. Secondly it will focus upon how a business might prepare its annual master budget, including how budgeted balance sheets, cash budget and budgeted income statements affect the overall master budget. Finally it will examine potential behavioural issues that might arise within a business. When managing a company’s finance the use of planning, control and budgeting are all equally important and interconnected with one another. In effect, when a company keeping a tight rein on cash flow, fixed costs and variable costs through the use of planning and budgeting, it will consequently allow the company to better control its profit margin. When conducting research on the importance of planning and control Kay states: Control and planning are interrelated so closely that they cannot be separated from each other. Without control all the planning is fruitless because control consists of the steps taken to ensure that the performance of the organization conforms to the plans. (Kay, 2012) Kay indicates that what has been previously written about within this essay is correct; additionally it suggests that both are directly interconnected with one another. Planning can be broken up into two main...
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...time period, which may incorporate arranged incomes, cash flow, costs, resources, and liabilities. Budgeting alludes to the procedure of outlining, actualizing, and working budgets. Budgeting, as a control device, gives an activity plan to guarantee that the association's real exercises are slightest digressed from the planned exercises. Budgets are utilized to give an outline of the organization and procedures performed in it. They are helpful in asset allocation where assets are distributed in such a route, to the point that the techniques, which are relied upon to give the most astounding returns, receive top priority (Libby and Murray, 2010). Budgets are additionally forecast instruments and bring about a significant improvement readied to adjust to changes in business atmosphere. They ought to be produced in such a route, to the point that they consider the key necessities of each of the functions. Budget detailing comprises of an arrangement of exercises: a budget department is created in which a budget controller is appointed, strategies are developed for budget readiness, budget recommendations are created at the department level, the budget is developed for the whole company, financial backing period and key budget elements are decided, the budget is evaluated and approved, growth is observed, and the budget is amended (Carlson and Palaveev, 2004). Traditional budgeting contains a few issues or shortcomings. As indicated by feedback, companies these days ought to have...
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...Robert Adams Health Care Budget Planning and budgeting helps ensure that operations are being carried out in a manner consistent with the mission and vision of the organization. There are several budgeting models that are effective. According to Louis C. Gapenski, (2008), “More detailed managerial guidance is contained in the operating plan, often called the five-year plan. The financial plan, which is the financial portion of the operating plan, contains a long-term plan, working capital management plan, and managerial accounting plan” (Gapenski, 2008). Good financial management processes for tracking resource utilization are essential for a department to make effective use of its resources. Not planning and budgeting properly can also lead to even bigger problems in the finances of an organization. Most effective financial management practices Effective financial planning and control helps each department in the organization keep track of its resources and hold each department accountable. Monitoring of expenditure is essential on a regular basis. The most effective financial management practices include variance analysis, benchmarking, environmental scanning, model development, forecasting, types of budgets, types of monitoring methods and frequency of monitoring. According to VarianceAnalysis.org, (2014), “Variance analysis is defined as the difference between the expected amount and the actual amount of costs or revenues. Variance analysis uses this standard or expected...
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...Managing Financial Principles and Techniques - Financial and Investment analysis Contents 1. Be able to apply cost concepts to the decision-making process 2 2. Be able to apply forecasting techniques to obtain information for decision making 4 3. Be able to participate in the budgetary process of an organization 5 4. Be able to recommend cost reduction and management processes for an organization 7 5. Be able to use financial appraisal techniques to make strategic investment decisions for an organization 8 6. Be able to interpret financial statements for planning and decision making 10 References 12 1. Be able to apply cost concepts to the decision-making process 1.1 explain the importance of costs in the pricing strategy of an organisation The pricing strategy becomes the major element in marketing mix of Dell Computers as it is related to product positioning. When there is a planning for new product launch pricing strategy is important and it requires general sequence of stages involved during pricing the new product. The different steps are as follows: (Daft, 2011) * Developing marketing strategy – helps the company to develop marketing strategy based on market analysis, market segmentation and positioning * Marketing Mix decisions – Defining a product, distribution and its promotional tactics * Estimation of demand curve – Estimating the demand and understand how it varies from quantity wit price * Cost Calculation – Calculation of fixed...
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...LEARNING ISSUES COST-VOLUME-PROFIT (CVP) ANALYSIS 1. Definition of cvp 2. Objectives of cvp 3. The importance of cvp to the management: 4. Describe the situation of increasing return to scale 5. Describe the situation of decreasing return to scale 6. Distinguish between economist’s and accountant’s approach to cvp analysis 7. Define the term of “profit volume ratio”. 8. Definition of cost behavior 9. Types and examples for each of the cost behaviour 10. Which should be less and more? 11. How are graphs for each types of cost behaviour? 12. Why in the short-term, some costs and revenues are not relevant for decision making? 13. What would be the effect on the profits if we reduce selling price and sell more units? 14. Should we pay workers on a basis salary only/commission only/combinations? 15. How would changes in sales volume affect the profits of the firms? 16. Definition of bep 17. Limitation of bep 18. Benefit of (bep) 19. Assumptions in (bep) 20. Computation of bep in units and in value 21. What is the effect on a firm’s (bep) of a lower income tax rate? 22. Can break even analysis to be used to determine the sales level that is needed in order to earn a target net profit? 23. Break even point graph 24. Definitions of sales mix 25. What’s the effect on the company’s profits? 26. What is the assumption in the basis? 27...
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...Budget For Planning and Control An integral part of the modern business enterprise, budgeting not only aids in the planning process, but it also provides an array of accounting measures that can be used to hold managers accountable for the firm's performance. By Richard Sansing A budget is a projected set of consequences of carrying out planned activity. Firms use budgets to facilitate the communication of specialized information from throughout the firm so that an internally consistent production plan can be devised. The budgeted numbers are then used to record certain transactions. Differences between budgeted and actual performance then appear in the accounting records, and can be analyzed so as to evaluate the performance of the firm. The budgeting process interacts with the operations research process in two ways. First, the budget process facilitates the transfer of both accounting and non-accounting information to those involved in operations. This information provides a basis for the formulation of the firm's production plan. Second, the budget reflects the production plan, and becomes a benchmark for subsequent performance evaluation. An analysis of deviations from the budget provides additional information that can be used when formulating the next period's production plan. The Planning Stage Feldman Toy Company makes two types of toys, regular and deluxe. Each toy requires the use of machine time in the production process. To illustrate the way the budget...
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...Jim DeMello Case 1- Signal Cable Company; Cash Flow Analysis Case 2- Bigger Isn't Always Better; Financial Ratio Analysis Case 3- Playing the Numbers Game!; DuPont Analysis Case 4-Growing Pains; Financial Forecasting Case 5- There’s More to Us Than Meets the Eye!; Financial Analysis and Forecasting Case 6- Lottery Winnings-Looks Can Be Deceptive; Time Value of Money Case 7- It’s Better Late Than Never!; Retirement Planning Case 8- Paying Off That Dream House; Loan Amortization Case 9- Wake Up and Smell the Coffee!; Time Value of Money Case 10- Corporate Bonds-They Are More Complex Than You Think; Bond Analysis and Valuation Case 11- How Low Can It Go?; Application of Stock Valuation Methods Case 12- What Are We Really Worth; Valuation of Common Stock Case 13- The Lazy Mower: Is It Really Worth It?; Estimating Cash Flow-New Project Analysis Case 14- If the Coat Fits, Wear it; Replacement Project Analysis Case 15- The Dilemma at Day-Pro; Comparison of Capital Budgeting Techniques Case 16- Too Hot to Handle; Capital Budgeting Case 17- Flirting with Risk; Risk and Return Case 18- I Wish I Had a Crystal Ball; Real Options and Capital Budgeting Case 19- Can One Size Fit All?; Determining the Cost of Capital Case 20- We Are Not All Alike; Divisional Costs of Capital Case 21- Where Do We Draw the Line?: Marginal Cost of Capital and Capital Budgeting Case 22- EVA ? Does It Really Work?; Economic Value Added (EVA) Case 23- It’s Better...
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...Robert Lutherb a: Department of Accounting, Finance and Management, University of Essex, Wivenhoe Park, Colchester, CO4 3SQ (Correspondence address) b: Bristol Business School, U.W.E., Bristol, BS16 1QY The authors are grateful for the constructive comments of participants at the EIASM conference on New Directions in Management Accounting: Innovations in Practice and Research, December 2002, Brussels. Financial support from the Chartered Institute of Management Accountants is acknowledged with gratitude. 2 An Empirical Investigation of the Evolution of Management Accounting Practices Abstract This paper investigates and reports on the status of management accounting practices in UK industry. The analysis operationalises the IFAC statement on Management Accounting Concepts and its description of the evolution of management accounting. The results, based on responses from 123 practising management accountants, suggest that the management accounting employed in many UK industrial companies is not particularly sophisticated. Budgeting, product profitability and financial performance measurement remain the central pillars and some of the newer management accounting techniques are less widely used than might be assumed from a reading of the textbooks. There is little evidence of management accounting concerned directly with ‘value creation’. 3 1. Introduction During the 1980s...
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