Essay on Budget Management Analysis

1324 Words6 Pages
Budget management analysis is commonly used by mangers as a tool helping to make sure that all resources in existence get put to use correctly. The budgets are determined annually because they are determined by the preceding year’s budget and differences. Budgets can be controlled by specific techniques to control budgets within prediction, consider five to seven expense results with budget anticipations, explain possible factors that cause fluctuations, present ways to keep results associated with goals, share three benchmarking strategies, and consider the ones that could increase budget accuracy, and give good reason for the choices made. (Finkler, 2007) Several techniques are often used to regulate budgets; managers as well as the…show more content…
Differences could be within the budget that could be beneficial, or over the budget which can be. The difference is used as a tool to calculate the budget for upcoming years, help to reduce spending within the present year, and assist in evaluating the managers and their agencies. To specify the source of fluctuations the managers are required to investigate and justify to top management the reason why the difference occurred. There are numerous reasons behind fluctuations, which have to be recognized and maintained if possible. (Finkler, 2007) While calculating the nursing expense results from different units for a pay period, there have been some favorable and unfavorable fluctuations. While examining the expense record the paid original hour’s difference was within the budget and the paid nonproductive hour’s difference was 60 hours over the predicted time period. The unexpected difference of paid nonproductive time period could have happened as a result of some employees being on adapted duty, sick leave, conference time, or training time, which means that they are primarily getting paid with no patient care needed. The overtime percentage of hour’s difference was 7 .5% over the budget and the registry percentage of hour’s difference was 8 .0% over the budget, both of these are unfavorable. The overtime could have been the result of bad time management strategies, late arrival of the following shift, or working past shift hours as a result of a low
Get Access