...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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...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 levels for all necessary city services. The goals and objectives of the City is the guideline for forming the City’s yearly budget. The budget projection is slated to significantly improve the city’s local business climate over the next few years. Most of the city’s growth stems from workers in the nearby city of Austin, TX, where real estate and property taxes are slightly higher. It is best for the city and it’s implementation partners to be flexible given the needs and demand of the economy and market. Kyle’s adopted annual budget will require...
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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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...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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...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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...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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...what an operating budget is and it can be defined as the upcoming statement of profit and loss for the different divisions and units of a company as well as the company as whole for the upcoming year. To identify the variances as well as to monitor things this operating budget is normally divided into what is usually called quarters. For a health care company these budgets are prepared for the following year and is normally discussed for some kind of approval by the upper management teams. When the year is at an end the management team that is in charge of certain areas are then asked to provide an account of the performances from the previous year. Effective financial management practices in creating and monitoring an operating budget When it comes to creating and monitoring a budget, the use of financial management should not be overemphasized. To start off, the budget construction form should be able to identify all of the relevant data that is involved. The operating budget can be best utilized as a profit and loss statement projection and to prepare the estimates of expenses and future revenues. To make it easier to monitor Finkler (2006) states that an operating budget should be presented together with the appropriate schedules as well as statements which act as supportive documentation. In order to have an operating budget that is effective one must be created on an annual basis while at the same time the best way to have an effective monitoring of the operating budget...
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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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...Operating Budget Christine Mosqueda ACC206: Principles of Accounting II Instructor LaKeitha Givens Date Submitted Operating Budget Within a firm, there are many approaches a manger must organize to get the required attention from the employees. The most important and necessary thing a manager must do is to be able to construct a budget. In an operating budget, there are many different elements that are required to maintain the integrity of the budget for the company. Managers must include an operating budget that keeps the company disciplined and organized. As the manager develops the operating budget, he/she must also decipher what the variance of the budget is. An operating budget is as important as a heart is to a human, if the operating budget is designed correctly, then the company with the budget could flourish into a successful business. In the process of developing the operating budget, the first step is to start with the construction of the budget. To start constructing a budget, the company needs to form a plan. In the process of forming a plan, management would get together to then choose a direction that they would like the company to go. After forming a plan, the company also needs to think about the development of the strategy. The development of the strategy is extremely important because as in any strategy if you move too early or too late, the whole strategic plan could be ruined. The strategy a company takes will determine how successful...
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...The Company Play Book – The Operating Budget Accounting is the language of business; the operating budget is the company play book for the coming year. With the operating budget the company can forecast the overall health of the enterprise. Management is able to foresee the financial strength of the company based on the sales revenue, Cost of Goods Sold (COGS), the operation expense that then provides the budgeted income statement. Although good management is required to ensure a company’s fiscal health, the operation budget if well planned is the actual path that will ensure success. The operating budget is a part of the Master Budget. What makes it so important is that it contains the projected operating net income for the business. What are the elements that make up a budget? “The operating budget is the 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.” (Horngren, Harrison, & Oliver, 2012 pg. 1056). Sales revenue in the operating budget is the guideline that assists in letting managers know the health of the company. The sales revenue projects the number of units to be sold, and the timeline for the payments for the units. The forecasting for sales is a science unto itself. The company determines the amount of units by historical reference, the life cycle of the product, the financial market (example if we are in a recession we do not...
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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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...Health Care Budget: Financial Management Practices Andrew Ojo HCS/577 University Of Phoenix Health Care Budget: Financial Management Practices Budget involves pulling resources together to achieve a specific goal. According to Gapenski (2006), budgeting is an offshoot in a planning process. A basic managerial accounting tool use in holding planning and control functions together is referred to as set of budgets (p. 255). Most entities and organization create budgets as a guide for controlling its spending, predict how much profit, and it expenditure as they progress toward a set goal. One major setback manager or budget developer encounter is trying to design a future, a process that cannot be created with the precision just right. This article discusses some financial management practices considered most effective in creating and monitoring an operating budget. It also highlights some least effective financial management practices in creating and monitoring an operation budget. Most Effective Financial Management Practices in an Operating Budget Creating and monitoring an operating budget needs a careful consideration of so many factors, one of such factors is managing the finances. To do this, here are some of the most effective practices many organizations adopt in creating and monitoring budgets; * Having a corporate strategy Evaluating the progress of a budget is dependent on expenses and how resources are allocated. Because of this singular fact, linking...
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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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