...Large businesses have big budgets for marketing and promotion and as a result, people gravitate towards buying their products. What problems does this cause? What could be done to encourage people to buy local products? (Laila) With the fact that increasing monetary funds are being invested in the marketing and promotion by big companies, customers tend to choose their products. This trend will cause several problems, and various measures can be taken by governments and companies to promote the sales of the local products. The giant company’s market expansion which is stimulated by the marketing and promotion may cause a variety of problems. Firstly, it forces many enterprises to join the war of sales promotion. More and more companies would focus on the marketing rather than the product, which, is supposed to be the most important part of a company. If the quality of products decreases, people will decrease their interest in products to a great extent, then the huge amount of marketing strategies will be pointless and in the end, damage the whole industry. Secondly, the imbalance of the market will be caused. Big companies become bigger, and companies with limited budget will be eliminated from the market. Thus, startups which provide good quality products have no opportunities to approach the public. Moreover, large businesses from other nations also have a huge impact on the local companies since nowadays people are more likely to choose the brand with world-wide...
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...The Vershire Company has to keep tight controls over their plants, budgets, and performance in terms of efficiency and effectiveness, because customers can easily purchase from another manufacturer if cost, quality, and service are not met. The planning strength of the Vershire Company is that a sales budget is formulated at the corporate level and starts with a forecast, which is created and sent to the divisional managers for review. This allows divisional managers to have some input for their budget, which will add to the accuracy. Corporate controllers also visit each plant for additional input before final submission. The company I work also formulates a sales budget; we are actually starting the process in October. We look at our historical sales data, our current sales, and our sales targets for the coming year. The sales budget leads to the development of the other budgets, manufacturing, production, purchasing, inventories, sales and other expenses. Our budgets are usually determined by end of November, no later than mid December for the New Year. All departments have input and are responsible for their budgets. Our forecasting and planning efforts are examined on a monthly basis throughout the year as well as daily inputs from the sales quotation department through their quote follow-up efforts. This allows us to keep tighter controls on inventories to keep us within the set budget as well as keep reasonable lead times for the different product lines. The weakness...
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...Financial objectives are the specific, focused targets of the finance department/function within an organisation. Mulcahy’s financial objectives are to cut costs by 5% per annum for the next 3 years and to increase sales revenue by 20% per annum for the next 3 years. There is some tension between these two financial objectives because it is hard to increase sales revenue whilst reducing costs. One internal factor that may have influenced the achievement of both of their financial objectives is finance. Mulcahy’s prices are only mid-range and reducing that price could attract more customers to Mulcahy’s. This would further influence the achievement of increasing sales revenue by 20% per annum for the next 3 years. Although, these mid-range prices are reasonable which may effectively help Mulcahy’s achieve this financial objective. One external factor that may have influenced the achievement of both financial objectives is competition. The business does not have any unique skills which could hinder a potential customer’s choice between Mulcahy’s and a competitor. This could be a risk to Mulcahy’s achieving both of their financial objectives because if potential customers go to competitors, it is much less likely that Mulcahy’s will reach their objective of increasing sales revenue which makes it unlikely that they would also reach their goal of reducing costs. However, Molly’s skills to identify opportunities may help Mulcahy’s reduce the risk of competition and achieve their...
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...covered in detail in chapters one and two. Budgetary control is defined by the Institute of Cost and Management Accountants (CIMA) as: "The establishment of budgets relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by individual action the objective of that policy, or to provide a basis for its revision". Chapter objectives This chapter is intended to provide: marketing as a key marketing control technique An overview of the advantages and disadvantages of budgeting Structure of the chapter Of all business activities, budgeting is one of the most important and, therefore, requires detailed attention. The chapter looks at the concept of responsibility centres, and the advantages and disadvantages of budgetary control. It then goes on to look at the detail of budget construction and the use to which budgets can be put. Like all management tools, the chapter highlights the need for detailed information, if the technique is to be used to its fullest advantage. Budgetary control methods a) Budget: activities in a given period of time. -ordinate the activities of the organisation. An example would be an advertising budget or sales force budget. b) Budgetary control: can either exercise control action or revise the original budgets. Budgetary control and responsibility centres; These enable managers to monitor organisational functions. A responsibility centre can be defined as...
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...Mouhamed Tall 6110 47th Ave South Seattle WA 98118 EDUCATION Bachelor of Arts in Economics – Minor: Public Policy Georgia State University – Andrew Young School of Policy Studies May 2013 Associate of Applied Science in Banking and Finance Georgia Piedmont Technical College May 2009 EXPERIENCE Amazon, BFI 5Seattle, Washington 2014- Present Fulfillment Associate • Sort packages manually to assigned areas • Use a RF unit to palletize product for delivery • Unload trailers for packages to be sort it out • Maintain accuracy, quality, and meet or exceed productivity quotas while performing these tasks • Operate manual and electric material handling equipment such as hand jacks • Perform other duties as assigned Katmai Government Services, Anchorage, Alaska 2011-2013 Role player/foreign language specialist • Trained soldiers through military mission and situational exercises that enable soldiers’ battalions to interact under various conditions • Replicated various roles and groups of people representing possible situations military battalions may face during deployment ...
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...Health Care Budget HCS/577 When it comes to the creation as well as monitoring of a budget, the use of effective financial management practices cannot be overemphasized. To begin with, the budget construction form must identify all relevant data. An operating budget is best presented as a profit and loss statement projection. With that in mind, estimates of expenses and revenues (future) must be prepared. To ease monitoring, Finkler et al. (2006) notes that an operating budget should be presented together with the appropriate schedules as well as statements which act as supportive documentation? This paper will discuss the most effective and least effective budget management practices. According to Gapenski (2008), an effective operating budget must be created on an annual basis. However, for purposes of effective monitoring of an operating budget, it is important to note that an entity can come up with a number of quarterly or monthly budgets for utilization as the year progresses. An operating budget must also include all the important information including inventory and operating expenses, costs associated with manufacturing as well as sales forecasts. The inclusion of all this information as well as the categorization of the various items according to Boyd et al. (2010, May) is vital as this is what avails the financial outlays necessary for sales generation as well as other activities. Based on the size of the company or entity, Campbell et al. (1998) note that it...
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...'Advertising Budget' An estimation of a company's promotional expenditures over a period of time. An advertising budget is the money a company is willing to set aside to accomplish its marketing objectives. When creating the advertising budget, a company must weigh the trade-offs between spending one additional advertising dollar with the amount of revenue that dollar will bring in as revenue. ADVERTISING BUDGET An advertising budget reflects the importance given to the function of advertising within a company. The budgeting process is the responsibility of the top management along with the marketing manager.The advertising budget is both a planning and control device. There are many managerial functions that are performed through the process of budgeting. Managerial goals are discussed and are synchronized with marketing and advertising objectives. This provides a forum of communication that resolves conflicts and sets the priorities for the communication plan of the company.An advertising budget is a plan that sets a limitation on advertising expenditures, states how expenditure will be allocated and controls the dispersement of expenditure over a designated period of time.The process of budgeting is therefore a decision making process that divides the total appropriation under different expenses heads. For example if the total advertising budget for launching...
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...AC4.1 Explain the uses of a budget Businesses use budgets to plan, monitor and control the spending within the business in order to manage their financial resources more efficiently. Budgets also give businesses guidelines to follow, this gives them direction and co-ordination, in order to help the company move forward as opposed to not having a goal or objective to move towards. Capital budgets are used for any investments in resources needed, to last more than a year; these are also typically used to generate profit/income. Operational budgets cover the day-to-day spending within a business which includes wages, utilities and supplies etc. Money can be borrowed from the operational budget for capital expenditures. At Tinsmiths our budget is managed by the Business Owner/Manager and the Finance administrator, they work together to ensure effective financial management, and to make sure that the budget is realistic and appropriate for each department/section. It is the role of the shop manager and office manager to decide if they need extra resources/supplies for their department throughout the year. It is also good practice to factor into the finical forecast a budget for innovation and investments and any other potential future activities that may occur throughout the year as this will leave you better...
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...Q1. Develop a new budget and justify your expenses for each of the five budgeted expense areas. Sales Department: No. of sales force (new recruits) 6 Total Salary for new joinees 450000 Total Salary of Existing Sales Reps 1500000 Total Salary for Sales Force 1950000 For additional sales of $2,000,000 , we need to recruit 6 sales force. (Considering the fact that each new joinee makes a sales of $4000,000 ) The total budget required for sales department is $1,950,000. Production Department: Add., Production Line 4,00,000 New labor wages 2,25,000 New labor wages for 9.5 months 1,78,125 Materials cost 8,06,250 Material cost for 1875 units 755859.4 Training Cost 10500 Additional Cost 13,44,484 10,000 units production cost 60,00,000 overtime cost 75000 Total Cost 74,19,484 New labors training starts in the mid of March, so in total 9.5 months wages is given to them. 175 units are manufactured by the exiting production line. So the material cost is calculated for remaining 1875 units. The total budget for Production Department is $74,19,484. Marketing Department: Product Development 2,50,000 Sales Aid 25,000 Training & Introduction 25,000 NPD Total 3,00,000 5% of 12,00,00,000 600000 o/h 6,00,000 Total 15,00,000 The total budget for marketing budget is $15,00,000. (Calculation is shown in the above table) Administration Department: 7 Managers 2,40,000 (1 month salary) 2,857 Total Manager Salary 2,37,143 Clerk Salary 9 clerks...
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...Cost Accounting Tabitha Smith ACC 310 Christine Errico January 12, 2011 Cost Accounting What is cost accounting? Cost accounting as referred to as managerial accounting is a system of accounting used specifically by managers (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting measures, records and reports information about costs to help managers to form a well informed decisions for an organization (Lanen, Anderson, & Maher, 2011, p. 6). Cost accounting methods and their use, budgets including discipline, construction, and elements, and variance analysis are important aspects of cost accounting as a whole, which is an important tool for a successful organization. The main goal of cost accounting is to help managers to maximize value within their organization (Lanen, Anderson, & Maher, 2011, p. 3). One of the fundamental services of cost accounting is to provide information to the manager to guide them to make effective valuable decisions (Lanen, Anderson, & Maher, 2011, p. 3). An essential objective of cost accounting is to create an effective value chain (Lanen, Anderson, & Maher, 2011, p. 4). A value chain is a set of activities in which raw materials are converted into goods and services for consumers to purchase (Lanen, Anderson, & Maher, 2011, p. 4). An organization is responsible to coordinate with their vendors and suppliers along with their distributors and customers to accomplish their objective (Lanen, Anderson...
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...Davis group Planning a Budget * Davis Service Group PLC employ around 17,000 people. * Its shares are quoted on the London Stock Exchange. * It mainly cleans and maintains things like industrial textiles, such as protective clothing. * They do this for four sectors work wear, healthcare, hotels and restaurants and general facilities. * They are a national company but only in Europe. * Careful budgeting has helped Davis to continue to be a profitable company even through the recession. Building a Budget * Some variables in a business that can be budgeted include: * Sales * Output * Costs * Operating and fixed * Profits * Cash flow * Capital investment. * A business’ budget for the year is based on assumptions of what will happen in the year ahead. * The budget is flexible to a certain extent and can be changed if for example, the manager sees that sales are significantly lower/higher than what was expected. * Zero budgeting is used by some managers and it means that they start every year at zero and then justify each expenditure rather than having a proper budget. * Budgets are most likely yearly but can be longer or shorter. * Davis’ budget runs from January through to December. * Davis Service Group is careful to set budgets in consultation and not to impose them on the different parts of the business. Making Assumptions * A budget needs to make assumptions about how internal and external...
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... Competition Bikes, Inc. Budget Process Budgets are used for forecasting future business growth and outcomes. Providing a comparison between a forecasted budget with previous year’s actual results allows leadership to strategize and plan for the company’s future on past performance. Producing a master budget roadmap for future operations may be done in two ways--by using fixed budget or flexible budgeting processes. There are advantages and disadvantages of each method of evaluation or projection of growth and it is recommended that the leadership of Competition Bikes, Inc, (CBI) consider all options presented to optimize future corporate growth. The CEO of Competition Bikes, Inc. requested a review of current budgetary information (“Year 8”) projection for the upcoming business year. Areas of analysis and management intervention have been reviewed based on data provided by CBI. Competition Bikes, Inc.’s “Year 9” budget (pro forma) has been based on financial information provided based on a current trend analysis from three previous years and focusing on “Year 8” financials. A master budget was created to plan and control revenues and costs for future growth and corporate development for “Year 9.” The benefit to CBI leadership in reviewing “Year 9” financial plans allows for decision-making on planning, coordination of operations, and benchmarking for an evaluation of actual performance at the end of “Year 9.” To review, a static budget does not change after it is...
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...general manager of the division. Division general manager hasfull control on their business with two exceptions: the increase incapital and labor relations, because both are centered at the central office.3. The existence of the review by the research staff at headquarters preparation statementssubmitted by each division general manager. This is a reportpreparation to incorporate summaries regarding sales,earnings, and capital requests for next year's budget.4. The making of the budget in the form of gross profit, fixed expenses, andpre-tax income made by the order to each plant. Gain is calculatedas the value of sales budget is smaller than an unexpected expense budgetand the budget you have for sure.5. For a review of variance whose value exceeds the budget made by themanagement company, and ask a local plant manager notmeet the target to explain.6. The existence of the fixed costs of testing to determine whether the factory has beenimplementing programs, whether the factory has met the cost of the budget,and whether the results were in line with expectations.b. Weakness:1. The report submitted by the general manager of the division is not given in detail. Itcan lead to allegations of fraud committed by the staff general manager.2. The lack of change in the predictions at the level of the area unless approved by the manager ofthe area Only managers who have the capability of being promoted, the...
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...application, she noticed that in addition to a business plan, she needed to prepare a one-year budget. Mei Po was taken aback. She planned her cash-flow month to month. How could she predict what would happen over the period of a year? It seemed impossible. What would you do? The first step in developing a budget is to establish a set of assumptions about the future. Questions Mei Po might ask include: Will the demand for her gifts grow over the next year? If yes, by how much? The next step is for Mei Po to calculate expected revenues and expenses based on past performance and future expectations. The difference between revenues and expenses is net income. If Mei Po is satisfied with the numbers, she can finalize her budget. If she wants higher net income, she needs to identify new strategies that will support different assumptions. In this topic, you'll learn how to identify and create a budget that will most effectively help you meet your business goals and how to use communication skills to develop realistic, accurate budgets that keep your organization on track. Mei Po wants to expand her business. How can she budget for the next year? |Next » Get Started Topic Objectives This topic helps you: * Understand what budgets are and how the budgeting process works * Prepare different types of budgets * Create "what if" scenarios * Monitor and evaluate budget performance « Previous |Next » Get Started About the Mentor V.G. Narayanan V.G....
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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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