...Operating Budgets Your Name ACC206 Instructors Name April 09, 2012 Operating Budgets An operating budget for a company is a budget that the company operates by. Without this, the company could spend too much money leading them into a bankrupcy or could spend too little money and could cut into the loss of potential sales. The operating budget helps a company maximize its maximum potential without falling in a hole that it cannot climb out of. The operating budget is part of the company's master budget. Horngren, Harrison & Oliver state that the operating budget is a set of budgets that project sales revenue, cost of goods sold, and operating expenses, leading to the budgeted income statement that projects operating income for the period. Once the company knows the income that it has to operate with, it will send budgets out to the stores and this is the budgets that management must work with in operations. There should never be a store, no matter how big or how small that should run without a budget. Management needs to know what they are budgeted in order to maximize profits. The projected sales revenue is made in order to let management know how many units will need to be sold to reach the breaking point. Once the breaking point is made, the rest of the units will generate income for the store. The cost of goods sold will determine how many units will need to be sold in order to reach the breaking point for the sales revenue. Each unit cost money to make...
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...The Operating Budget Dr. Marion Lee PAD 505- Public Budgeting and Finance May 4, 2014 Abstract This paper will give the Operating Budget for the City Of New Orleans. It will provide the agencies mission, goals, objectives, departments and strategic plan. It will describe the budget of the agency by addressing the Financial Summary, including revenue expenditures, department budgets, funding, capital projects and debt administration. This paper will also perform a Cost Analysis which will include fixed cost, step-fixed cost, and variable cost. It will identify one to two challenges a Budget Analyst will have in managing the budget. This paper will recommend two to three strategies the agency should review regarding new initiatives and budget cuts over the next five years. Introduction With roots spanning all the way back to the 1700’s, The City of New Orleans is the Largest Metropolitan city in the State of Louisiana. It is a port city, which had a population of 343, 829 as of the 2010 U.S. Census (Bureau, 2012). The mission, goals and objectives of the city are to have more public safety, more job creation, more recreation for the youth, and to reduce blight in the city. New Orleans is still in a transition stage. Even though it has been 9 years after Hurricane Katrina, one of America’s Deadliest Hurricanes, the city is still rebuilding, still restructuring and actually still growing. Hurricane Katrina affected the city’s economic wellbeing. The city has several...
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...Part I: The Operating Budget for the City of Kyle Texas PAD 505 Public Budgeting and Financ Introduction The city of Kyle, Texas is on its way to becoming a full service community with targets to continue to grow their quality healthcare, higher education, and retail industries for the benefit of the local residents. According to the City Kyle website, Kyle is home to over 60,000 persons with a projected growth rate of 6.9% between 2010 and 2015 (www.cityofkyle.com). These total conflicts with the US Census website, which reports the City of Kyle was home to 29,293 residents in 2011, and had a projection growth of 4.6% (www.census.gov). Following the US Census calculation the population rate for the City of Kyle would project the 2012 population rate to be 30,640. The two totals conflict sufficiently and will evidently cause some confusion with the projected outcomes. The City of Kyle is considered a Home Rule City, a city with an adopted home rule charter for its local self-governance. In addition to being a Home Rule City, the City of Kyle also operates with a City Manager form of Government. The City Council is comprised of a Mayor and six Council Members. The resident voters choose the Mayor and three Council Members at large and the other three Council Members are elected from their prospective districts. The goal of the proposed budget for the City of Kyle is to maintain the current service...
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...CHAPTER 1 THE PROBLEM AND ITS BACKGROUND Introduction A budget is an estimation of the revenues and expenses at a given time. It is the amount allocated to certain asset or expense as an exchange for that asset or to the usage that led to that expense. According to an article from entrepreneurship.org, the business planning starts with budgets. Budgeting is not an afterthought. Your budget is a reflection of the goals and strategies you have for each area of business. A one-year budget planning document for the firm that is composed of all other budgets is called a master budget. Usually it is composed of two parts, the operating budget and the financial budget. Under the financial budget is what we call a cash budget. Cash Budget is the inflows and outflows of cash in a firm. It develops a summary of its operating, investing and financing activities. These activities will help us determine and observe how a firm creates their cash budget. This research aims to evaluate the cash budgeting process of JTU Marketing Auto Supply and to develop a recommendation, if necessary, for them to improve the said process. Most, if not all, small organizations do not have plans or budgets but still manages to survive and gain profit. This research could help organizations to realize and see that budgets would help them find out some problems in their organization. Also, the research could be used as a basis for an improved study regarding cash budgeting processes in different industries...
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...Week 8 Assignment MAT 540 Name Instructor Name Date Problem Introduction The owner of Chips etc. produces 2 kinds of chips: Lime (L) and Vinegar (V). He has a limited amount of the 3 ingredients used to produce these chips available for his next production run: 4600 ounces of salt, 9400 ounces of flour, and 2200 ounces of herbs. A bag of Lime chips requires 1.5 ounces of salt, 5 ounces of flour, and 2 ounces of herbs to produce; while a bag of Vinegar chips requires 4 ounces of salt, 6 ounces of flour, and 2 ounces of herbs. Profits for a bag of Lime chips are $0.48, and for a bag of Vinegar chips $0.59. a) What is the formulation for this problem? b) For the production combination of 800 bags of Lime and 600 bags of Vinegar, which resource is not completely used up and how much is remaining? c) For the production combination of 800 bags of Lime and 600 bags of Vinegar, which resource is not completely used up and how much is remaining? d) Discuss: Slack (if any); shadow price, and sensitivity analysis results using the program of your choice. Above problem is a maximization problem as one is trying to maximize the profits by making different bags of chips. It takes salt, flour and herbs to make two different types of chips – Lime and Vinegar. There are constrained amounts of salt, flour and herb and the owner want to maximize his profits. The amount of profit per bag is given as well. The LP problem thus becomes: Maximize Profits from the sale of bags...
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...Name: Course: Institution: My response to stress When I am all worked by stress, I am usually very restless and often lack sleep. I also experience mild headaches. Everything usually seems very boring and I get very dull. When stressed up, I am usually very irritable and gets annoyed I project a very bad temper. I therefore isolate myself and contact very few or no one at all. These are my general reactions to stress. I am most concerned about how easily I get annoyed and can lash out at very slight things. If this persists, I can end up hurting myself or other people. I therefore try to control my stress levels to avoid incidences that I might regret. I have found some easy ways of dealing with my reactions. When I feel stress building up, first thing I do is to momentarily give myself a break from what is stressing me. For instance if it is an exam that is making me stressed up, I momentarily stop reading for the test, slide into my track suite, carry my mp3 player and earphones and go for a jog. This usually sets my mind to other issues in my life. As I progress with the jog, I keep playing in my head positive encouraging phrases. My all-time favorite is, ‘let me make it happen, like I always do!’ With this phrase continually running through my head, I usually begin feeling relaxed and mostly even find myself smiling. At that moment, I know that the paper is no longer affecting me. I then get back home, still playing the message, take a warm bath and pray. This helps me relax...
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...MA Global Management with pathways Peer Assessment and Evaluation Form Your Team: KFC Seminar 1 Your Name: Aanchal Mahajan Date: 25/10/2012 Name of Peer you are evaluating: Leesha Mansukhani Module: Managing Processes & Projects Coursework: 1 (Team Work) The purpose of this Form is to provide an insight on team members and your own contribution to your team's overall performance. Section A: Peer (Team member) Questionnaire (Please complete one for each of your member) Once this is completed, you are required to complete the same Form (Section A) for yourself, and answer the additional questions in section B below…. **Completed form to be inserted in a sealed envelope OR SIMILAR INDICATING YOUR MODULE CODE and submit to your RELEVANT module leader after EACH OF your team work submission. Students may be viva voce on their parts if required to FURTHER verify their efforts. ** *All work must be word processed* Rate the following factors: Taking the work load as a whole over the life of the team work period e.g. did all students contributes equally in the coursework? Use the criteria factors below to rate your team member. | Criteria | Description of attaining FULL marks- Outstanding - | Description of attaining NO marks- Poor - | *Criteria mark | Typed Justification for mark | Overall average Mark given by you | Regular attendance at team meetings | * Attended all meetings; * stayed to an agreed end; * working within timescale ...
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...adequate understanding or appropriate application of the skill, concept, procedure, or tool? o What risks or failures are associated with an inadequate understanding or inappropriate application of the skill, concept, procedure, or tool? Save the completed worksheet as a Microsoft Word document with your name in the file name. Submit the file to your instructor. Worksheet Submitted By: Adriana Smith December 24, 2012 |Term |Definition |Scenario | |Capital expenditure |Outlines the organization’s financial |A women’s health center that wants to expand its Maternity Ward to| |budget |considerations for managing and acquiring capital |include 10 new private...
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...Health Care Budget An operating budget is a strategic initiative for the organizations financial plans over the course of the coming year. The operating budget works directly with the Statement of Activities (SOA) for a fiscal year to accomplish the organization financial goals. To produce an effective operating budget the organization needs to have knowledge of what financial management practices work best for the financial goals they are planning to use. Proper understanding of these concepts is vital for the operating budget to become successful for the upcoming year. Effective Financial Management Practices Effective financial management practices include several types of rules that an organization should follow to create a successful operating budget. Budgeting should focus on income first targeting the reliable income in the budget. Never filling those gaps with income projections to cover expenses can cause a deficit if your organization can not produce the income target within the year. Expenses should be lower than the dependable income total. Each department should be in agreement with this financial management practice. This leaves the additional programs and projects to be set in motion if the revenue allows additional funds (Hamilton, 2010). A financial management practices uses the beginning with the prior fiscal years total, and building the new upcoming year budget on those amounts. This takes calculating percentage of increases and decrease to determine...
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...Kenya Ratcliff American Intercontinental University FINA425 – Budgeting January 24, 2016 Abstract This is a research paper about financial budgets. This research paper talks about a management director would establish policies and system for a business and/or organization. This research paper will help to explain the different style of budgets, budget cycles and the guidelines rules for set up a financial budget for a business and/or organization. Unit 3 Individual Project Introduction This is a report from the management director to establish policies and systems for the new business, I Can Business Incorporated (ICBI). This report will be delivered to the board of directors of ICBI. This report will describe what a financial reporting system is and explain how management for ICBI should use an activity based budget instead of an operating budget. This report also gives examples of budget guidelines for ICBI. Describe the meaning and the components of a financial reporting system Financial reporting is the process of compiling statements that shows a glimpse of an organization’s financial “health” or status to management, investors and the government. There are four basic reports that are included in a financial report. There is a balance sheet, an income statement or sometimes called the profit & loss statement, a cash flow statement and a statement of shareholder’s equity. The balance sheet gives a detailed picture of the financial condition of a business at...
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...Healthcare Budget HCS 577 Sharon Gomes- Sanders Healthcare Budget Review of the Patton-Fuller community Hospital's 2009 operating budget and 2010 budget assumptions showed the accuracy of the 2010 operating budget projection. The operating budget is the yearly statement of profit and loss for the organization. Healthcare organizations prepare projected operating budgets for the approval of senior management. At the end of the fiscal year, a detailed accounting provides the report for how the company performed. There are effective and ineffective ways to manage the fiscal status of healthcare entities. This paper will take everything into consideration and identify effective and ineffective financial management practices in the health care setting. Healthcare businesses thrive on a foundation of strong fiscal management. There are effective management practices in the creation and monitor of an operational budget. An effective management practice is to link budget development to corporate strategy. When the budget is linked to the overall corporate strategy, managers and employees can get a clearer picture of the company's strategic goals. Capital management aligns an organization's long-range strategic, financial, and related operating plans (Nugent, 2001). Obtaining employee buy in leads to the coordination of support for organizational goals, leading to strong fiscal performance. Effective communication between departments ensures a same page mentality in budget development...
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... Service department costs can be assigned to ________. customers only producing departments only customers and producing departments none of the above A major benefit of effective budgeting is that ________. it compels managers to think ahead it aids managers in communicating objectives to employees it provides benchmarks to evaluate subsequent performance all of the above A budget is a qualitative expression of a plan of action. True/ False The effectiveness of any budgeting system depends directly on the attitudes of top management toward the budgeting system. True/ False Managers may ________ their budgeted costs or ________ their budgeted revenue to create a budget target that is easier to achieve. understate; overstate overstate; understate understate; understate overstate; overstate Managers may lie to increase the resources allocated to their departments. True/ False Which of the following budgets identifies the overall goals and...
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...Supply Budget Cranston INF 336 Project Procurement Management (BQ01208A) Instructor: Kurt Earnhart 9/21/2012 A wide-ranging budget is serious to organizational success. However, the importance of the material supply budget cannot be overlooked. Established after the predicting of supply needs and resourcing has been completed, the supply budget defines how the business can meet its upcoming goals and targets and do so in cost-efficient and cost-effective ways. Separated into 4 distinct budgets, the materials, MRO, Capital and administrative/operating budget, the supply budget offers the business the means to meet its goals and objectives. * The Materials (operations) purchase budget, is based on the group’s forecasted operations, sales and plans classifies cash flow labels and problems well in advance. Because of this task, the materials (operations) purchase budget separates problems and gives the organization ways to avoid predicament. * The MRO Budget, which normally covers a purchase plan over 12 month periods, outlines budgetary provisions for maintenance, repair and operating supplies. Due to the intricacy of the MRO budget and the line items it contains, the MRO budget is really thought-provoking. For clear reasons, it might be impossible to forecast some repairs. * The Capital Budget fine points the money outflows based on the strategic plans of product lines and production needs. Because of this, some companies may plan the wealth outflows for one...
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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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...INTRODUCTION: The budget preparation phase starts with the Development Budget Coordination Committee (DBCC). It is headed by the DBM Secretary and its members are the Secretary of Finance, the NEDA Director-General, and the Bangko Sentral Governor, with the Office of the President for general oversight. The NEDA provides the over-all macro-economic assumptions with which budgetary levels are to be determined. They involve the projected Gross National Product (GNP) real growth rates, inflation rates, 91-day treasury bill rates, the London Interbank Offered Rates (LIBOR) rates, foreign exchange rates, population growth, and other economic parameters. The Department of Finance (DOF), the Bureau of the Treasury, the Bureau of Internal Revenue and the Bureau of Customs help the DBCC in determining the sources of financing. They project the revenues that will be generated for the budget year as well as the borrowings that may have to be tapped. The DBCC determines the overall economic targets, expenditure levels, the revenue projection, deficit levels and the financing plan. It submits them to the President and the Cabinet for approval. Once these are approved, the DBM issues the Budget Call. This requires agencies to prepare their budgets in accordance with the said guidelines, macro-economic assumptions, and ceilings. The DBM spells out guidelines, procedures, and timetables. Agencies undertake their own internal consultations. They rank programs, projects and activities using...
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