Sample Resume : ' U2 '

Compares five to seven expense results with budget expectations and describes possible reason for variances and strategies to keep results aligned with expectations

This section will help you to evidence Learning Outcome 3: Understand how to manage budgets.

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).

In this task, the budget schedule and proformas as well as the flexible budget were reviewed. Below you will find my analysis and recommended corrective actions as well as how management by exception applies.

The pro forma statements and budgets were instrumental in determining what additional measures needed to be taken to ensure progress within the company. By reviewing the pro-forma statements I was able to determine that I needed to raise the price of my product due to the fact that the target markets had indicated what they would pay for such product and the cost of production was over whelming the income received from sales. After the first quarter I was able to decide that changes needed to be made to not only the price of each product but additional products needed to be added to meet the needs of specific target areas. I was also able to determine by analyzing the budget

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.

A budget can be disadvantageous also. There is judgment and subjectivity in the budgeting process. It does not consider quality and customer service. Budgets can be seen as pressure devices imposed by management, thus resulting in: bad labour relations. Budget could results departmental conflict arises due to disputes over resource allocation, and departments blaming each other if targets are not attained. It is difficult to reconcile personal and corporate goals

Budget formulation and use are tools that guide many decision making strategies in business. The measures that are least effective could create an avalanche of catastrophic events that can negatively impact the decision making strategies. It is in the best interest of the pertinent parties to draft an operating budget based on a collective set of information relating to organizational vision and mission. Ineffective measures can be catastrophic based on the foundation for measures used in creating the budget. Among the many issues organizations face that relates to creating an effective operating budget results from poor

Blocher E., Stout D., Juras P., Cokins G. (2013). Strategy and Master Budget. Cost Management. (6th ed., pp. 350-406). New york: The McGraw-Hill Companies. DOI:www.mhhe.com/blocher6e

Budget is time-consuming, especially if it involves a poorly managed company. The budget only pays attention to the quantitative aspect of business while neglecting the qualitative aspects. It does not consider the quality of services or goods and therefore inconsiderate of customers’ satisfaction. Another disadvantage of a budget is that it is inaccurate. A firm rarely “makes budget.” The hope is that the business activity will be close to the budget, but it could be off considerably and lead to bad hiring, spending and production decisions. This is because budget preparation is based on assumptions and thereby changes in the business environment could lead to unachievable

The budget also addresses identifiable problems using strategic, long-range, and operational planning (including technology) in the effective, legal, and equitable use of fiscal, human, and material resource allocation that focuses on teaching and learning. The principal did not have anything to say on this topic and said the finance director would be a great source of information. The finance director said that the school budget is not that unique in the way the budget comes about. The computer has a replacement cycle, as do textbooks. The computer budget is stretched 3 years max to replace technology. The information technology budget is responsible for replacing out of

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.

When reflecting on the individual courses, I had very little application and experience in the actual budgeting process. I learned the most NEW information in the finance class. I knew how to do a budget and understood basic functions of input and output and even some basic formulas. The qualitative functions of the budget were the most interesting and certainly explained many decisions made over the past many years in reference to building projects and staffing. I learned through Dr. Vandew’s commentary to understand the value in resource allocations and the political documentation and communication necessary when developing budgets (A. Vandrew, personal communication, August 25,

This major problem has necessitated this study to actually sensitize organizations about the need to make sure that proper budgets and budgetary control measures are put in place to help meet organizational goals.

A very first advantages of traditional budgeting is it provides a framework of control and planning (Réka, Ştefan & Daniel, n.d.). The main role of traditional budgeting is to coordinate company daily financial activities, it provides a prior overall picture to company on spending or expenses. Traditional budgeting acts as a reference point for company to follow. It is also supported by Horngren(2012) saying that, traditional budget acts as a quantitative expression of a proposed plan of action whereby date and tasks will be specified to complete a plan. A research paper conducted by Hanninen (2013) concluded that traditional budgeting acts as a powerful tool for management controls. By reviewing the budget, it grants the right to top management to restrict wasting of resources or capital by low level managers. For example, a budget will limit each department or division in term of expenses. By giving, a certain amount of operational capital, each department or division will then come out a most effective way to maximize the efficiency of operational capital. In contrast, inefficient management will exist in company and it will caused unnecessary expenses or even corruption. From shareholder prospective, traditional budgeting assists management team or company more efficiently using of capital.