Case Study: HPPD

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.

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.

Based on the spreadsheet, the Human Services Department faces a great shortfall. Our department is planning to make a 5% reduction from the Social Services Fund within the Human Services Department. In the Social Services Fund, we require the reduction of the expenses category in order to hit the target reduction. By reducing 5% of the Social Services Fund, the cost of target reduction would be $ 2,679,764. Then based on the target reduction, we are planning to reduce the 2015 adopted budget.

What kinds of objectives have you found in HP 2020 related to your aggregate of interest?

Describe the budget process and how staff members at the unit level impact the budget.

May need to steal staffing budget from other City departments to create a fund to

Operation costs have been constant issue for Drownling Mountain. Based on sensitivity analysis towards labour costs (Appendix 4), there is an opportunity to lower costs and increase efficiency. For example, hire more part timers for less-skilled required jobs to replace permanent workers. Scheduling stagger shift in order to eliminate overtime payment. The key is to identify company’s key stakeholders and get their commitment to your plans before we implement them. (Appendix7)

Over the last few months, the Northern Ontario Party has been approached by desperate business owners looking for any kind of assistance with their outrageous hydro bills. One such business owner is Roslyn Taylor who operates Taylor’s sawmill on Manitoulin Island. Roslyn, recently posted on Facebook her hydro bill for the month of July. It was nearly $4000.00 and this was a month where her main saw was down and her company’s production was low. So, you would expect the company’s power bill to be reasonable. But here is what the Taylor’s hydro bill looked like

A 10% savings for unlimited coverage and a 35% savings for a retiree with full life-time health care.

The DPS has an adverse selection problem and is significantly over capitalized and over-administered for its declining student population.

Our average daily census is lower than our sister unit 7B, so our “fixed cost” of minimum staffing numbers naturally requires a higher HPPD.

The next step would be for management to know precisely how their decision to downsize capacity would impact the firm’s future operating costs, and also identify specific areas in which the firm could achieve additional cost reductions. Additionally, the cost analysis would help forecast the firm’s operating costs and projected profits (or losses) for the upcoming fiscal year. However, before we can proceed with such analysis, an examination of how the various categories of Continental’s costs behave is in order.

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

2. Hire a management team to replace or train existing employees about the individual departments so that all business is handled in a professional manor and stay organized.

No matter which leadership theory it is to apply, Fiorina’s leadership style in HP was relatively clear-cut: a task-oriented, autocratic, transactional leadership style, whichever way it is named.