Capital budgeting (or investment appraisal) is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures.[1] Many formal methods are used in capital budgeting, including the techniques such as Accounting rate of return Payback period Net present value Profitability index
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analysis 5. Explain kaizen budgeting and how it is used for cost management 6. Prepare an activity-based budget 7. Describe responsibility centers and responsibility accounting 8. Explain how controllability relates to responsibility accounting II. CHAPTER SYNOPSIS Chapter 6 introduces the important topic of budgets. Budgets are the primary financial planning tool used by businesses. The chapter explains how businesses use budgets and budgeting as part of the management process
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What-If Analysis and Activity-Based Budgeting Forecasting Resource Demands Excerpted from Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits By Robert S. Kaplan, Steven R. Anderson Harvard Business Press Boston, Massachusetts ISBN-13: 978-1-4221-2227-3 2227BC Copyright 2008 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America This chapter was originally published as chapter 5 of Time-Driven
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TABLE OF CONTENTS * Executive Summary 2 * Introduction 3 * Cash Budget 3 * Operating Budget 3 * Budgeting Administration 4 * Behavioural Aspect of Budgeting 4 * Participative Budgeting 5 * Top Down Process 6 * Bottom up Process 6 * Budgetary Slack 6 * Frequent feedback on Performance 7
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The main essentials for an effective and successful system of budgetary control can be given as mentioned below: * Support to top management: In order to make the budgeting system successful, it is necessary that it must have the whole hearted support of every person involved in the organizational set up. In this regard, the initiative must come from the top management; * Definite and reasonable targets or goals: For the successful operations of the budgetary control system, the targets fixed
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“Ruger Clinic” Rosalind Carter Ellis Dr. Merle Point HSA 525: Health Financial Management-Assignment # 2 January 28, 2012 Introduction: The Housekeeping Service department of Ruger Clinic, a multispecialty practice in Toledo, Ohio, had $100,000 in direct costs in 2007. These costs must be allocated to Ruger’s three revenue-producing patient services departments using the direct method. Two cost drivers are under consideration: patient services revenue and hours of housekeeping services used
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for the students for a long time, these students need to have basic financial planning in order to prevent something bad happen in the future. The lists of variables that have been brought up are lack of knowledge in personal finance in terms of budgeting capabilities, lifestyle of students which is based on spending and alsostudent background in personal finance which based on parent’s profile/ income. This list of independent variables will be measured based on the relationship between the levels
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PART I 1) The effects of the new computerized system The computerized manufacturing system will have deep impact on manufacturing processes and costing. The new system may affect the manufacturing processes by slowing them down like Anh Tran is afraid. As it requires training and reorganizing and will take time for employees to fully get used to it, the production line will be delayed and might not reach the budgeted target. The manufacturing costs will certainly increase as depreciation cost
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traced to the first ten points in the A. Kyoto Treaty. B. Consumer Bill of Rights. C. Constitution. D. Nuremberg Code. 2. Which form of budgeting involves taking a fixed percentage of some criterion, such as sales, as the basis for the research budget? A. Departmental budgeting B. Rule-of-thumb budgeting C. Percentage-of-sales budgeting D. Functional-area budgeting 3. Pilot tests typically use a sample size of _______ participants. A. less than 100 B. 100–500 C. more than 1000 D. 501–1000 4
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phases of management control process: Programming, budgeting, measuring and Reporting and evaluating. In Programming phase, Boulder public schools are follow a tripartite objective: quality education, equal access, and accountability. At time same time, they want to reduce operational inefficiencies. Based on these strategies, the superintendent provided detailed plan in a document of about 100 pages long, and the other two supplement files. In budgeting phase, principals and headmasters need strictly
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