a written strategic plan; how operating and planning budgets differ; does the company have a budget committee or one person who develops the budget; how is budget guidance issued to the budgeting team/person; how often does the company develop a budget; when during their fiscal year do they prepare the budget for the next budget period. The company I interviewed has a yearly operating and planning budget. They use their budget numbers from
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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:
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Planning Solutions to Questions 9-1 A budget is a detailed plan outlining the acquisition and use of financial and other resources over a given time period. As such, it represents a plan for the future expressed in formal quantitative terms. Budgetary control involves the use of budgets to control the actual activities of a firm. 9-2 1. Budgets provide a means of communicating management’s plans throughout the organization. 2. Budgets force managers to think about and plan for the
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privately owned. It is June 2013, and Anne Wright, general Manager of Winbald, is worried about her companies’ substantial underperformance against budget. She needs to understand what has happened, and what might be the best courses of action. The Case Study gives several information on the sales and costs budgeting process as well as the final budget of the company. Furthermore, the Case Study requires an evaluation of the budgeting process as well as a final suggestion (based on two possible courses
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Question 1: Budgetary Planning and Control. Budgets are used primarily as a planning tool. It helps to give a business direction, taking the organization’s goals and objectives and translates it into tangible aims. It shows how a company intends to utilize or acquire resources in other to achieve its objectives; either in the short or long term. Apart from the use of budget as a means for performance evaluation, directing and problem solving, it is essentially a business’ future financial plan which
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|$7,500 | Part (a) Prepare the pizzeria’s planning budget for February assuming that 1,500 pizzas are served. Part (b) Assume that 1,600 pizzas were served in February. Prepare a flexible budget for this level of activity. Part (c) Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February. |Revenue |$18,800
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Accounting 202 TTH 11:00-12:30 Paying People to lie Michael’s C. Jensen’s paper explains that the use of budgets or targets to measure an organization’s performance and compensation leads to counterproductive effects within organizations. Jensen believes that the solution to this problem is not to completely eliminate the budgeting systems, but instead to change the way performance is measured, the way rewards are given, and the way punishment is applied. In budgeting systems, managers are generally
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resources across ministries. It soon became apparent that there were weak linkages between policy formulation, budgeting process as well as project implementation and evaluation. There was also little or no integration between operating and development budget. More importantly, the system could not meet
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Quick-Start Budget Your irst budget! It’s also the simplest, so you can relax now. It’s time to get your feet wet with budgeting. This form is only one page, but it will show you how much money you need every month to cover necessities. While your mortgage or rent is listed here, we won’t get into the details of your credit card bills, student loans, car payments and any other debt yet. The Quick-Start Budget is just your starting point. step 1 Write down what you’re spending for the month in each
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Exam 2 1. Which of the following is NOT a component of the master budget? c. Budget to Actual Variance Analysis 2. Figure 4-10 The Manoli Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual) | rug cleaners | sweepers | total | units produced | 50,000 | 250,000 | 300,000 | prime costs | $200,000 | $750,000 | $950,000 | direct labor hours | 10,000 | 40,000 | 50,000 | machine hours | 20,000 | 10,000 | 30,000 | number
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