Cost Estimation and Budgeting

The company should consider ethical aspects of the changes in original budget and actual sales/amount. The main reason behind it is the variances in materials, labor, and overhead. In addition to this, the firm should evaluate the actual variance in the materials, labor, and overhead and after that change in budgets in order to maintain business ethics and to reduce improper changes in budget that is unethical aspect of the business (Delaney & Whittington, 2012).

15. What are your thoughts of the importance of understanding the per patient day (PPD)

a) Does the range rule of thumb overestimate or underestimate the standard deviation for the number of people living in your home? Q17

2. An example of a interval scale variable is the make of a car. FALSE

When you write the paper, please don’t use a excel spreadsheet, only use analysis of the data in Microsoft word sheet. I mean explain everything in words. Thanks!

This paper will clarify the various terms used to describe costs, such as fixed, variable, direct, indirect, and sunk, giving examples of each to help a good understanding of current budget discussions. These concepts will help HR Management with an understanding of making effective budget decisions for its company, since they need to have clear and full knowledge of basic accounting language to grasp the concepts of the various accounting terms.

Analyze the challenges that organizations face in the effective transition between selling products using the traditional brick and mortar marketing channel and selling products online. Synthesize the strategies that organizations like Zara and Wal-Mart- two companies that are having difficulty developing eCommerce capability can implement to increase the effortless movement of customers between the traditional and online channels.

Direct costs are those that can be identified specifically with a particular final cost objective are charged to a program/grant directly:

There were many different financial tools I can make use of that would greatly benefit me in the future, as well as right now in present day. Some financial tools that I can use to make better decision financially are budgets. There are many different types of budgeting systems that can be utilized. Budgeting will help me have a clear goal of what is safe to spend and what needs to be utilized for spending on appropriate items for daily living. With defined goals. It is easier to monitor, track and trend spending. One can better plan for items such as vacations, or for retirement. Using a budget allows one to be conservative with their spending. I can also use a more defined and complete budgeting system such as a comprehensive budget. (Rachel Siegal and Carol Yacht, Personal Finance, Published December 2009). This will allows all facets of my life financially to be monitored and tracked. To show recurring income and expenses deriving from daily life, an operating budget can be utilized. (Accounting Tools, What Are the Types of Budget Models;

ABSTRACT: This case1 provides an opportunity to study budgets, budget variances, and performance evaluation at several levels. As a purely mechanical problem, the case asks for calculations of various price, efficiency, spending, and volume variances from a set of budgets and actual results. The case is also an interpretive exercise. After the variances have been computed, the next step is to develop plausible conjectures about their likely causes. Finally, it is a case about performance evaluation and responsibility accounting. The company has an incentive plan, based on the budget

10.  (TCO F) Elliott Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company manufactures tools to customer specifications. The following data pertain to Job 1501: Direct materials used: $4,200Direct labor hours worked: 300Direct labor rate per hour: $8.00Machine hours used: 200Predetermined overhead rate per machine hour: $15.00What is the total manufacturing cost recorded on Job 1501? (Points : 7)

Another expense results with budget expectations is capital purchases. Capital purchases are those that cost an organization more than $5,000. Such purchases include radiology equipment, lab equipment, computer systems. Unexpected expenses occur when equipment failure occurs and a need for new or repaired equipment arises or when unexpected volumes of patients require additional capital purchases of equipment to be made. “Working capital management is the role of the manager, in ensuring that there is adequate cash on hand to meet the organization’s needs and minimizing the cost of those resources” (Finkler et al., 2007, p. 360). Variances occur when multiple unexpected costs arise and that reserved cash is expended and needs to assume short-term loans or take away from other departments is necessary. This type of unexpected spending may be categorized as an unfavorable variance. Unfavorable variances are “variances in which more is spent than the budgeted amount” (Finkler et al., 2007, p. 501).

Creating a budget is relatively simple, but sticking to one is a much more arduous task. There is a great deal of self-discipline that goes into solidifying a concrete spending plan.Unfortunately, not all possess this trait, and there are many reasons a budget may not be working the way it was intended to.

The board of directors of the Cortez Beach Yacht Club (CBYC) is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about $50,000 of new equipment each year and wants to begin a fund to purchase a $600,000 piece of property for club expansion.

Direct costs are costs directly related to producing the products and services of a project. On the other hand, indirect costs are costs not directly related to a project’s products or services, but are indirectly related to performing the project.