Operational Budgeting and Profit Planning Discussion QUESTIONS Q21-1. Planning is the process of forecasting future operating activities, whereas budgeting places the plans in financial terms based upon the related revenues and expenses. Control relates to evaluating the plans and budgets in comparison with the actual activities. Q21-2. Except in small organizations, budgeting requires formal planning because of the need to coordinate the budget among various levels of the organization
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I agree to a certain extent that budgeting is a key component in management short and long term planning. Budgeting is a key process for planning, monitoring and controlling the finances of a firm. It focuses in points evaluating the alternative choices before making a decision. Budgeting serves many different purposes such as monitoring the revenue and expenditure over a certain time frame, or it can also anticipate the income and expenses over the financial year. Budgets help you determine where
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quoted in Ola and Offiong (2008). Government Accounting and Financial Control Ibadan, Nigeria: Spectrum Books Limited, p. 55. Rolling Plan in Nigeria’s Planning and Budgeting System Owing to poor achievement of past eco nomic plans and poor budgetary implementation in Nigeria, the military administration in 1990, introduced the idea of a rolling plan based on three year perspective in order to address the planning and budgetary predicaments experienced in the past. The a im of this planning
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The paper analyzes various aspects of budget preparation process, the need for involving all the stakeholders in order to create an inclusive workplace and to take appropriate measures for detecting and controlling fraud through various internal control measures. 1) Circulating budget to the staff It is essential to compose the financial backing prepared so it is clear to the management about the estimation instruments that should be connected to screen the advancement and make an agenda to
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capital The role of management control systems in NGOs Research executive summary series Volume 6 | Issue 6 Key findings: • Non-governmental organisations (NGOs) are being confronted with the competitive nature of acquiring funds and need to demonstrate that they have particular competencies to funders, while at the same time continuing to adhere to their traditional welfare or development values. • The evidence shows that developing formal management controls can help NGOs to develop networks
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arrive at rapidly additionally expanded by them .Risks which convolute the appraisal of counterparty danger, strategy reactions and danger administration were not completely perceived by monetary controllers and establishments, now they have done by budgetary advancements. In spite of the fact that relations among foundations have
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County of Fairfax, Virginia Ten Principles of Sound Financial Management April 30, 2007 1. Planning Policy. The planning system in the County will continue as a dynamic process, which is synchronized with the capital improvement program, capital budget and operating budget. The County’s land use plans shall not be allowed to become static. There will continue to be periodic reviews of the plans at least every five years. Small area plans shall not be modified without consideration of contiguous plans
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Chapter 8 1 2 3 Strategy and the Master Budget 1 Teaching Notes for Cases 8-1: Emerson Electric Company Background • Emerson is an $8 billion company. • Its successful strategy is efficient, quality, and low cost production. R&D does not get a great deal of attention from top management. Planning Process • Top management sets sales growth and return on total capital targets for the divisions. • Each fiscal year, from November to July, the CEO and
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Generally speaking, MBR makes results central to managerial and organizational action. For Mazouz and Leclerc (2008), the concept of results refers to four specific and measurable categories of outputs that the managers of public service supply systems must consider in their quest for performance: delivery results, management results, policy results and overall improvement results (see the results categories discussed further on in this definition). MANAGEMENT BY RESULTS A number of management
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Managing Accounting Name: Institutional Affiliation: Date of Submission: Table of Contents Introduction 3 Task 1 3 Assessment criteria 1.1 3 Assessment criteria 1.2 4 Assessment criteria 1.3 4 Assessment criteria 1.4 6 Assessment criteria 1.4 7 Section 2 8 Assessment criteria 2.1 8 Assessment criteria 2.2 8 Assessment criteria 2.3 10 Section 3 11 Assessment criteria 3.1 11 Assessment criteria 3.2 13 Assessment criteria 3.4 15 Zero-based budgeting 16 Top-down budgeting
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