Body Glove Case Essay

JET2 TASK 2 10 Lastly the CB budget as a whole is somewhat of a concern because it has so many miscellaneous expenses that are not detailed and referred to as "Other" be it Asset or Liability and Also because it is a Annual Budget considering CB is a company whose product is a seasonal one ( competitive bicycle racing is a Spring and Summer sport) CB should use a quarterly budget or have a quarterly budget broke down as part of their annual budget. Not to mention that within the storyline a monthly budget is referenced being used for the purchasing department in order to purchase raw materials. The overall

Another concern identified, is the utilities expense budget for utilities in Year 9 which is $150,000. This amount is identified as a fixed amount and is unrelated to actually production activities and manufacturing efficiency. Considering that production levels and activity fluctuates throughout the year, the budget for utilities should be a variable item. An example; from Year 7 to Year 8, the utilities expenses increase by $15,000 and with this detection, ways to reduce this expense should be investigate. Another concern is a duplicated line item under the Selling, General, and Administrative Budget for Utilities and Utilities and Services. Another issue for concern, Total Variable Cost was reported to be lower; however was not enough for the lack of sales combined with an increase in advertising and transportation which resulted in an overall negative result. The low Net Sales directly impacted the Contribution Margin which decreased by $49,397. Overall, these concerns indicate the need for a flexible budget with variance analysis.

Planning is a function that is employed by every organization in projecting the future outcome of the firm. Successful firms achieve their goals through the use of different types of budgets. These budgets include, production budget, sales budget, labor budget and expenses budget. These budgets also show the targets that should be achieved by the firm within the budgeted time plan.

The budgets process could help to spread resoursces that increase the skill to get best outcome.

Budgets serve five main purposes; planning, facilitating communication and coordination, allocating resources, controlling profits and operations and evaluating performance and providing incentives. The budgeting process requires both technical and interpersonal leadership skills to achieve each of these purposes effectively. The director’s memo demonstrates several short comings in the budgeting process. The director instituted the “responsibility accounting system” as a means of evaluating performance. However, the DPW director has not consulted Sam in the budget process. Sam understands that his total expenditures are impacted by relatively unpredictable events that contribute to an uncontrollable element of his cost. The

with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was

A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496) The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred.

Budget management analysis is used by mangers as a tool and helps determine that all resources available are being used efficiently. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss specific strategies to manage budgets within forecast, compare five to seven expense results with budget expectations, describe possible reasons for variances, give strategies to keep results aligned with expectations, recommend three benchmarking techniques, and identify those that might improve budget accuracy, and justify the choices made.

In conclusion, every major company in the world uses budgeting and there is a good reason for that. It is an important component of financial success. Budgeting makes easier to achieve financial goals. It keeps track of all expenses and help to avoid crisis. It also helps companies to control their growth and provide them with realistic idea where business is going.

The company should reevaluate their costing process. Costing based on estimates of annual standard costs may be result to inaccurate cost estimates as cost of raw materials and manufacturing equipment fluctuate within a year. The company needs to be more dynamic in their costing

Budgeting is the systematic method of allocating financial, physical, and human resources to achieve an organization’s strategic goals. Budgets are utilized by for-profit and non-profit organizations to monitor the progress towards the goals, assist in the control of spending, and help predict cash flow for the organization.

This research paper is a brief discussion of budget management analysis. Budgeting is the key to financial management, and is the key to translates an organization goals or plan into money. Budgeting is a rough estimate of how much a company will need to get their work done, and provides the basis for evaluating performance, a source of motivation, coordinating business activities, a tool for management communication and instructions to employees. Without a budget an organization would be like a driver, driving blinded without instructions or any sense of direction, that’s how important a budget is to every organization and individual likewise (Clark, 2005).

A budgetary system is a system that an organization uses for preparing budgets and budget monitoring reports for the purpose of budgetary control. These include systems such as; Bottom-up budgeting, Activity based budgeting, Zero based Budgeting, Increamental budgeting etc.

Like any other business we need to lower our costs, we apparently have difficulties creating a realistic budget, at least initially, and also have great difficulties with accurately forecasting. Are budgeting problems for new products could be due to the fact that prospective costs on new parts take a while to get properly entered into the system, combine that fact with a 12 month projection, times the

Glove is produce by rubber which is not environmental friendly product. Rubber is a non-renewable resources and it cannot be reuse and recycle. Rubber is widely use in the health and medical field; these glove cannot be reuse again due to the sanitation condition. If we do not address this glove properly, it will cause pollution indirectly. This company also doesn’t have any long-term contracts with other companies hence the stability of the cash flow of the company is not steady even this company is a worldwide company. Top Glove Corporation is lack of brand portfolio because this company only have three brand which is ‘Top Glove’, ‘TG Medical’, and ‘Great Glove” which account for thirty percent of its production. This would make the company to invest in a brand-building exercise when the market reaches a point of saturation in order to defend its market share. Protein allergy is one of the company problems. Although the issue was once much debated, it has subsided in the US as natural