Flash Cards for Accounting 2

First, drawn from the situation of Ferguson & Son Manufacturing Company, it is pointed out that feasible targets play the first priority in designing the budgeting system. If the goal is too high as in the case of Ferguson & Son Manufacturing Company, then, in the following steps, the whole process automatically gets into trouble. The company should be realistic when setting any benchmark among the periods of manufacturing. The conditions of equipment, employees, orders, sales, and the coordination among other departments should be taken into account to jump to the most suitable

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).

Budgets should not be a managers task only. The whole organization should be involved in the budgeting process.

A budget is an instrument used to help managers ensure that the resources used effectively and proficiently toward the goals of an organization. A budget projection can be made on a yearly base depending on previous year or existing one. They can further be broken down quarterly or monthly depending on it use. Generating a budget is complex undertaking, and for a budget to be effective the organization ought to follow it strictly. However, no matter how closely a business follows their guidelines there will always be some form of variances. The organization should expect a few variances and be able to work these discrepancies in any budget

In this task I will be explaining what a budget is, why it used by companies and I will have to show how it helps a company in controlling its finance.

The budgeted income statement, cash flows, and balance sheet follow in order. The income budget relies on the revenue and expense forecast from the operating budget, while the budget cash flows are planned for financial and investment activities. A final component of the budget process, the projected balance statement, can be used to tie in all the budgeting dependencies. Once a budget has been prepared, evaluation can be expected before approval. Budgetary components may require several iterations before finalizing the organizational budget.

A budget is an itemized summary of what a business’s income and expenses will be for a given period of time, while allowing the business during this period to determine if they are able purchases items based on their budget. It’s an important tool that is used by management to help prioritize their spending and manage their money and allow them to identify any wasteful expenditure, respond quickly to any financial changes and to achieve their

The most crucial part of any firm is to decide about the budget. It includes a proper summary of expected expenditures and available resources for a specific period. One tiny mistake in the budgeting can make any company

Budgeting is potentially a managers most valuable planning and management tool - but only if budgets are carefully planned and monitored. Depending on the size of the organization, preparing a budget can be a very complex process. This tutorial focuses on important aspects of budgeting - preparation and

Budgeting is crucial in the well-being of a company especially the financial health status of a company. In fact, no professionally managed firm would fail to budget, since the budget establishes what is authorized, how to plan for purchasing contracts and hiring, and indicates how much financing is needed to support planned activity. It is routine for a company to budget for its expenses. Expense budgets act as a guideline of how much revenue a company would require keeping the activities running. It is used to set the company’s targets for a certain period.

The purpose of this paper is to examine the question of whether the budget has outlived its usefulness in the 21st century. Over the past 20 years, people within the academic and business worlds have argued that it is time for companies to move away from traditional budgets to a concept known as beyond budgeting (Sandalgaard & Nikolaj Bukh, 2014: 409-410). Researchers and business practitioners have argued that the traditional budget process requires too much time, with some estimating that traditional budgeting requires 20% of management time throughout the year to complete (Neely, Bourne & Adams, 2003: 22). Others have also argued that traditional budgeting is flawed because it provides an incentive for managers to essentially lie about how much money they project to spend or the revenue and profits they project to achieve in order to receive more monies or to demonstrate reduced spending to corporate leaders (Hope & Fraser, 2003: 108). However, some researchers and practitioners have explained that the entire idea that the traditional budgeting process is going to end in favor of the beyond budgeting concept is incorrect given that most organizations continue to prepare and use traditional budgets (Jackson & Starovic, 2004: 2).

Planning and control is a crucial process in company management, by which targets are achieved and the use of resources are made effective and efficient (John C, 1986). Budgeting is considered to be a useful technique in this process, aiming to give financial values to those plans and objectives that derived from company’s long-term strategies. (Hanninen, 2013).

Budgetary control is part of overall organisation control and is concerned primarily with the control of performance. The use of budgetary control in performance management has of late taken on greater importance especially as a more integrative control mechanism for the organisation. Discuss.

The word “budget” is derived from an old French word “bougette”, which has the meaning of that of purse (The Guardian, 2004). It is also defined as “the quantitative expression of a plan of action and an aid to the coordination and implementation of the plan” (Bhimani et al., 2013). These days, budget is essentially used in almost every organization as an aid of measurements when setting the organization’s objectives and targets. Its use has allowed managers to bring about the objectives of the business in quantitative terms, usually on an annual basis, with a financial means of expression. Budgetary control on the other hand, is narrated as “a system of management control in which actual income and spending are compared with planned income and spending, so that you can see if plans are being followed and if those plans need to be changed in order to make a profit” (Financial Times Lexicon, 2015) and has in recent times played a greater role in performance management. At the same time, relationship between corporations and the capital market is on a rise, and has since resulted in many complications. This essay aims to identify and describe the merits of budgetary control, and at the same time, analyses the shortcomings in relation to the capital market.

This project seeks to bring out the budgeting and budgetary control practices of UT financial institution, Koforidua, and how they can make sure their budgeting practices are done in such a way as to incur minimal or less cost for the organization