...Principles of budgets in a business environment Assessment You should use this file to complete your Assessment. • The first thing you need to do is save a copy of this document, either onto your computer or a USB drive • Then work through your Assessment, remembering to save your work regularly • When you’ve finished, print out a copy to keep for reference • Then, go to www.vision2learn.com and send your completed Assessment to your tutor via your My Study area – make sure it is clearly marked with your name, the course title and the Unit and Assessment number. Please note that this Assessment document has 7 pages and is made up of 3 Sections. Name: Section 1: The purpose of budgets This section will help you to evidence Learning Outcome 1: Understand the purpose of budgets in a business environment. |Learning objective |Place in Assessment | |1.1 Explain the purpose of budgets for managing financial resources to meet business |Question 1 Page 1 | |requirements | | 1. Why are budgets used to manage financial resources? [1.1] A budget is a plan translated into money and a tool for spread resources and perform strategic plans. Financial management bring...
Words: 1318 - Pages: 6
...forecasted expenses was $3,152. [pic] Expense1 Salaries The forecasted salary expenses were $105,469 and the actual salary expenses were $101,543. The variance was $101,543-$101=105,469= 3926. The salaries cost in the hospital decreased by 3926 as shown by the positive variance. The salary expenses reduced as the organization did not overspend on salaries as the number of employees was lower than they had planned. The managers were responsible as they stayed within the budget (Cleverly, Song & Cleverly, 2011). [pic] Expense 2 Employee benefits The organization forecasted the employee benefits to be $23,613 in 2010. The actual employee benefits in the organization were $22,513. The variance was &22,513-&23,613=$1,100. The employee benefits reduced by $1,100 and hence the company did not overspent. Though the organization provided employee benefits to its employees, managers ensured the benefits offered to employees did not exceed the planned amount and hence work hard to stay within the budget. The employee benefits could have reduced because the organization did not provide benefits to all the workers as some of the workers were not entitled to employee benefits (Cleverly, Song & Cleverly, 2011). [pic] Expense 3 Supplies The hospital forecasted supply expenses in 2010 to be $72,094, but the expenses were $71,901...
Words: 1568 - Pages: 7
...role. The role of the finance director varies according to the size of the company involved. However, in general, he or she oversees all financial aspects of company strategy and is responsible for the flow of financial information to the chief executive, the board and, where necessary, external parties such as investors or financial institutions. What Are the Duties of a Finance Director? They are in charge of company finances, or work with the executive in charge of finance to make sure the company remains as profitable as possible. Financial directors typically have a degree and professional experience in accounting or finance. * Approve Company Budgets: Finance directors are responsible for approving all company related budget plans. Project managers who create project plans typically also include a proposed budget for the project. It is the duty of a financial director to review and approve of the budget based on available company budget and potentially profitability from the project. Financial directors also approve proposed annual or quarterly budgets for various departments in the company, such as marketing or development. Department or project managers should communicate regularly with financial directors to ensure their particular department or project remains on budget as work progresses. * Forecast Revenue: Financial directors are also in charge of forecasting company revenue for a year, quarter or month. They base their forecasts on previous revenue...
Words: 1831 - Pages: 8
...[pic] Financial Management Process© For [Project Name] 1 Introduction The Project Financial Management Process is followed after the initial project budget has been documented and approved during the Project Initiation phase of the Project Management Life Cycle. What is a Financial Management Process? A Financial Management Process is a method by which costs (or expenses) incurred on the project are formally identified, approved and paid. Typical types of costs include: • Labor (e.g. staff, external suppliers, contractors and consultants) • Equipment (e.g. computers, furniture, building facilities, machinery and vehicles) • Materials (e.g. stationery, consumables, building materials, water and power) • Administration (e.g. legal, insurance, lending and accounting fees). © When to use a Financial Management Process The Financial Management Process should be initiated after the expected Financial Expense Form has been created and approved during the Planning phase of the project. This process provides a mechanism for monitoring and controlling the actual financials of the project against those that were originally planned/budgeted. It important to formally track expenses throughout all phases of the project, otherwise, it may become impossible to accurately manage the project constraints of time, budget and quality. 1.1 Instructions Complete all sections of this form. If a particular section is...
Words: 1546 - Pages: 7
...business development activities by researching and developing marketing opportunities and plans; implementing sales plans; managing staff. Duties and Responsibilities: Financial * Supervise accounting staff. * Maintain payroll records and work with payroll company to ensure timely and accurate employee payrolls and payment of required payroll taxes. * Administer employee benefit programs, including enrollment of new employees, and review of insurance company invoices to ensure accuracy. * Administer 401(k) program, including enrollment of new employees, preparation of contribution summaries, etc. * Perform bank account reconciliations. * Develop annual, quarterly, and monthly budgets with the President and maintain appropriate budgetary controls. * Prepare all applicable budget reports and financial statements on a monthly, quarterly, and annual basis. * Administer commissioned sales staff results, including margin analysis. Information Technology * Supervise IT staff. * Manage facilities: voice communications, data network, other equipment. * Supervise design of hardware and software systems to assist in the smooth and efficient flow of information. * Manage the development of the SMG corporate web site and SMG company intranet. * Recommend and develop plans for systems development and operations, hardware and software purchases, budget, and staffing. * Develop, implement, and monitor management information systems policies...
Words: 692 - Pages: 3
...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...
Words: 1455 - Pages: 6
...Task 1 Nowadays, adolescents rashly spend most of their money away without any financial planning. Over 90% of the adolescent’s parents are concerned about their children’s financial problems such as overspending and budget deficits.(1) According to the research of 00000, the adolescents’ knowledge of money management was decreased from 51% in 2007 to 35% in 2011.(8) I presume that budgeting can control income and expenses, therefore it would help the adolescents to achieve their financial goal. By having a good budget, adolescents can become aware of their financial situation and develop a spending plan to reach the financial goal in the future.(0) Hence, my topic is budgeting for the adolescents. Budgeting is a crucial financial tool, it is also a basis that can assist adolescents in reducing their financial problems.(2) Not only does budgeting help adolescents develop a spending plan and future goals, but it also leads them to acknowledge their income accurately, and develop advanced money management skills for their future planning.(2) 000000 research shows that high school students who had a personal financial education have higher rate of saving their income in comparison to students who didn’t undertake the program.(1) For most students, over 92%, acknowledged that having good money management can surely assist them in living a successful and financially stable life.(1) Task 2 In order to develop good budgeting, there are three factors to...
Words: 1181 - Pages: 5
...future years, this ideology goes to work. Knowingly, before we can set out a plan, we need to know where we want to end up. What position do we want to be in later in life? Do we have a 5 year, 10 year, and 20 year plan? What position do we want to be in when we retire? For that matter, when do we want to retire? Having a financial plan also helps us manage our money better and actually helps us make it stretch to achieve all the things we want in life. Financial planning helps us know where our money goes and how to keep money in our pocket or account for longer. We know what we want our money to do for us because we have taken the time to work it out in advance. Prior planning means that we avoid unnecessary and reckless spending on things we don’t really need. (Haven’t we all done that at some time?) We will know how much we can spend at any time and what our credit limits as to prevent shortage of money before we get to the end of the month. In conjunction with financial planning, there a few steps need to be taken in awareness. The first step is to work out what we want, what is important to us and what we want our financial future to look like. Investigate our personal values – those beliefs that we have about what is right and good. Most people make their decisions based on what they value. Sit down with our partner and determine our mutual values and how our differences could impact our financial future. This step alone will help to avoid many of the arguments couples...
Words: 818 - Pages: 4
...KEY RESPONSIBILITIES • Manage, control and ensure that company accounting activities and procedures conform to generally accepted accounting principles • Ensure that all financial transactions are handled and processed in-line with the approved policies and procedures. • Oversee the daily operations of the finance department • Prepare the monthly financial reports with all needed financial and costing analysis comparing with Budget and KPIs. • Manage the preparation of the official annual report of actual revenues, transfers, and expenses. • Manage the preparation of financial outlooks and financial forecasts in coordination with the CFO. • Ensure that the company are continuously keeping sufficient fund to fulfill its financial obligation by preparing monthly cash flow forecast. Monitor the actual cash flow against forecast and take the necessary measure to remedy variances. • Direct and coordinate debt financing and debt service payments with external agencies and monitor terms, conditions and covenants and ensure compliance with the same. • Prepare financial analysis for contract negotiations and product investment decisions. • Ensure compliance with local, state, and federal budgetary reporting requirements. • Lead and coordinate with all other department the preparation of annual operating budget and developing 3-10 years business plans for the company. • Recommend benchmarks for measuring the financial and operating performance of divisions and departments. • Establish...
Words: 393 - Pages: 2
...In some form or fashion, financial literacy applies to everyone. Financial literacy is the ability to understand how money works in the world; to be knowledgeable about one’s finances. Financial literacy is also about how someone manages to earn or make money. In addition, financial literacy is about how a person manages money, and how they invest it. Financial literacy applies to me in several ways. First and foremost the fact that I chose to attend college is an implication that I have some form of financial literacy. There is evidence that college graduates make more money. So overall, by me attending college reflects that I am financially literate about making money. Going to college is a financial benefit and make me more employable....
Words: 317 - Pages: 2
...Control Mechanisms Paper November 7, 2011 Control Mechanisms Paper Control mechanism within an organization is a process that manages, and directs the activities of employees toward organizational goals. Control is how capable managers make sure organizational activities are going as corporately planned. The lack of or the wrong kind of control within an organization can cause damage, that sometime can not be repaired (Bateman, T, Snell, S. 2009). Control mechanisms help managers to seek compliance with corporate goals, standards, values, and plans. Control Mechanisms Starbucks has many control mechanism, however the top four mechanisms are what drive the highly successful business. Budget control mechanisms are used to detect, and remove waste thus reducing store-opening cost. Financial controls are used to determine location of stores, and property leasing versus property ownership. Quality control is used to secure the most supreme coffee beans, market control is used for growth, and expansion strategies, and clan control which is used to create a partnership between employees and corporate. Starbucks employees are called partners which develop shared values and beliefs, culture, trust, and expectations. Starbuck’s uses these controls to manage the daily activities of their employees to the extent that they have become the number one coffee house in the world, both nationally, and soon to be internationally as they continue to expand in other countries...
Words: 1616 - Pages: 7
...Foundations for Financial Success Volume 1, Issue 1, March 3, 2011 TABLE CONTENTS OF What is financial literacy and why is it important? Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. More specifically, it refers to the set of skills and knowledge that allow an individual to make informed and effective decisions through their understanding of finances. Financial literacy involves a number of different areas of understanding. Learning about money and how it works is an important aspect, as well as understanding products like credit, loans, and investments. Competency in managing money appears to be a skill that doesn’t come naturally to everyone. Unless a person is exposed to the practice of money management, he/she is less likely to understand how it works and it long-term benefits. Without a financial education, it is easy to develop poor spending and financial habits resulting in significant negative consequences such as a poor credit rating, denial of credit, rejection for a checking account and bankruptcy, to name a few. Early financial literacy is the best way to prevent such consequences. In essence, personal financial literacy is much more than managing and investing money. It also includes making all the pieces of your financial life fit together. Achieving Financial Success you must understand and determine where your money goes. Here’s how you can start: Analyzing...
Words: 3492 - Pages: 14
...BBQfun (simulated business) Table of contents Chapter 1 – Business plan (excerpt) 2 Chapter 2 – Organisational chart and management profiles 3 Chapter 3 – Management responsibilities 4 Chapter 4 – Budget summary 5 Chapter 5 – Operational plan 6 Chapter 6 – Description of operations 9 Chapter 7 – Organisational risk register 10 Chapter 8– Marketing plan 12 Chapter 9 – Sales and marketing policy 24 Chapter 10 – BBQfun Privacy Policy 26 Chapter 11 – Anti-discrimination policy 30 Chapter 12 – Procurement policy and procedures 31 Chapter 13 – List of preapproved suppliers 36 Chapter 1 – Business plan (excerpt) Chapter 2 – Organisational chart and management profiles BBQfun organisational chart Chapter 3 – Management responsibilities Pat Mifsud, CEO Pat is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions. Riz Mehra, Chief Financial Officer Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz is also responsible for overseeing budgets for cost centres and individual projects. At completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections. Kim Chen, Operations General Manager Kim is responsible for the day-to-day running of the company. Kim oversees the...
Words: 693 - Pages: 3
...Unit six: Principles of budgets in a business environment Assessment You should use this file to complete your Assessment. • The first thing you need to do is save a copy of this document, either onto your computer or a USB drive • Then work through your Assessment, remembering to save your work regularly • When you’ve finished, print out a copy to keep for reference • Then, go to www.vision2learn.com and send your completed Assessment to your tutor via your My Study area – make sure it is clearly marked with your name, the course title and the Unit and Assessment number. Please note that this Assessment document has 12 pages and is made up of 3 Sections. Name: Genevieve Little Section 1: The purpose of budgets This section will help you to evidence Learning Outcome 1: Understand the purpose of budgets in a business environment. Learning objective Place in Assessment 1.1 Explain the purpose of budgets for managing financial resources to meet business requirements Question 1 Page 1 1a. What is meant by the term financial resources? [1.1] Financial resources mean the money available to a business for spending in the form of cash, liquid securities and credit lines. 1b. Explain why budgets are used to manage financial resources. [1.1] Budgets are used to manage financial resources in order to achieve organisational objectives. 1c. Explain how using budgets helps to meet business requirements. [1.1] It helps to meet business requirements...
Words: 317 - Pages: 2
...the relationship between management accounting and planning profiles in Brazilian companies. The main goal is to understand the consequences of not including a fully structured management accounting scheme in the planning process. The authors conducted a field research among medium and large-sized companies, using a probabilistic sample from a population of 2281 companies. Using analytic hierarchy process (AHP) and statistical cluster analysis, the authors grouped the entities' strategic budget planning processes into five profiles, after which the authors applied statistical tests to assess the five clusters. The study concludes that poor or fully implemented strategic and budget-planning processes relate to the management accounting profiles of the Brazilian organizations studied. © 2009 Published by Elsevier Inc. Article history: Received 1 March 2009 Received in revised form 1 September 2009 Accepted 1 November 2009 Available online xxxx Keywords: Management accounting Strategic planning Budget 1. Introduction The business environment has become increasingly volatile and unpredictable in recent decades, and business management has become correspondingly more complex. In particular,...
Words: 7654 - Pages: 31
