Volume, Risk, and Price Variance

Several U.S. surveys examine capital rationing in the overall investigation of the capital budgeting process. The following conclusions have been reached with regards to prevalence of capital rationing, the dominant causes and tools used in capital rationing analysis.

There are different types of budgeting that businesses typically use and those include Operating budgets, Capital Budgets and there are many subtypes that exist because a budget can also be created for special events, the recruitment and retention of new staff, and to manage the advertising expenses and return on investments for a business (Demand Media, 1999-2012). According to Demand Media (1999-2012), "An operating budget outlines the total operating expenses and income for the organization, typically for the period of a fiscal year. Capital budgets evaluate the investments and assets of the business, and a cash budget shows the predicted cash flow in and out of the business over a period of time” (para.2 ). According to the Cost-Benefit Analysis (2012), “Capital budgeting has at its core the tool of cost-benefit analysis; it merely extends the basic form into a multi-period analysis, with consideration of the time value of money. In this context, a new product, venture, or investment is evaluated on a start-to-finish basis, with care taken to capture all the impacts on the company, both cost and benefits. When these inputs and outputs are quantified by year, they can then be discounted to present value to determine the net present value of the opportunity at the time of the decision” ("Cost-Benefit Analysis," 2012).

The main difference between the federal budget and the state and local budgets is the issue of a monetary deficit, in which expenditures in the budget exceeds revenues that were estimated. State and local governments are required to balance their budgets. The federal government is allowed to borrow money to meet its obligations and have a deficit. The federal government collects the most tax revenue, but state and local governments have a greater range of revenue options for funding their budgets. The federal government relies mainly on income taxes, capital gains and Social Security taxes. State and local governments collect sales taxes, taxes on fuel, property taxes and fees from special licenses and permits. Also, many state and local

The financial health and welfare of Thurston County is dependent upon establishing and maintaining sound budgetary principles and strategies for implementation. These financial principles will govern the development and administration of budgets for all county offices and departments. The County is to prepare fiscal and capital budgets that are to be balanced to be able to forecasted, which are to be consistent with approved strategic goals and capital improvement goals. Each county office and department will periodically seek to use citizen feedback in the development of the internal strategic plans to develop the high priorities for Thurston County government. For each department, resources are made available that will remain aligned with the strategic planning and priorities developed with the public input. Thurston County will create and maintain a reserve for the general fund that is equal to one month of the budget annual expenditures. The reserve will serve the purpose of the financial stabilization account to safeguard against possible revenue shortages

The United States borrows money from individuals that have bought Treasury Bills, Notes, Bonds, and United States Savings Bonds. The U.S. government also borrows money by issuing Treasury securities. These securities finance expenditures that exceed its receipts, and are legal under the authority of the Second Liberty Bond Act. The government's primary source of income is through taxes paid by its citizens. Supposedly, money is spent on programs that government officials consider necessary to ensure the best quality of life for all (or at least the majority) of the nation's citizens. The combination of these amounts is what makes up the national

Capital expenditure budget. This budget is needed when an organization needs to invest in major projects and equipments, such as purchases of new products, new information technology systems, in which a management team will conduct a financial evaluation to determine whether the company’s return on investments will be met (Halliman, 2006).

Capital planning and budgeting is a very vital piece in the Public Budgeting System process. It is an essential implement in the financial management practice and is effective in both public and private organizations. It is the method which consists of the determination and the evaluation of the investments and the possible expenses by an organization. As explicate by Lee, Johnson, & Joyce (2008), capital budgets help in determining how much of each form of investment is needed, and it supports an organization in assessing the available revenue which includes loans is required to finance those investments (p. 475). Capital budgeting is a central part of the universal

Capital Budgeting encourages managers to accurately manage and control their capital expenditure. By providing powerful reporting and analysis, managers can take control of their budgets.

•Overall, expenditures were below final budget by $1.4 million. This was due in part to Public Safety being under budget by $149,000 because salaries were recorded in other funds, and Public Works being under budget by $146,000 mainly due to fewer capital leases and repairs and maintenance expenditures than expected.

The next thing you can learn from a government’s financial statements is about its infrastructure. Typically states elect to use the modified approach for capitalizing infrastructure. Under this approach, the

Budget analysis is an important process involving the evaluation of a given budget's efficiency. When conducting a budget analysis, it is crucial that all the problems areas be locate and that a check of the achieved financial goals be carried out. A budget analysis can be conducted on a monthly, quarterly as well as on a yearly basis. In this paper, we present an analysis of the state of Illinois Enacted FY2012 budget with a view of highlighting its efficiency and deficits.

Sourcing funding is vital in enabling Local Authorities to provide important services to meet the needs of the local community. Spending by local authorities is divided into current expenditure and capital expenditure, which form separate accounts. Current expenditure covers the day-to-day running of the local authority including housing maintenance, salaries, pensions and operational costs. Current expenditure is funded from a variety of sources including:

A recent study marked New York City as the 42nd in a list showing the most solvent city. Although each state has its own debt obligations, this shows that New York City has a lot of debts compared to some other more solvent cities such as Alaska and Nebraska. However, New York City can still be considered as fiscally solvent because the revenues exceed the expenses by two percent. The New York City has between 0.69 and 1.70 cash to cater for short term liabilities. New York City is required by the law to always balance its current year budget. So that the city remains solvent and the budget does not result in a deficit, the mayor and the city council must determine the amount of money they expect to receive. The money includes the taxes, non-taxes,

Thirdly, government can get money by issuing bonds to improve the life of its people. In the U.S., federal, state and local governments issue bonds to build, repair and improve schools, streets, hospitals, airports and many other public works.

The Government Finance Officers Association (GFOA) budget criteria framework covers 27 budgeting categories and was launched in 1984 to encourage the preparation of high quality budgets (Bland, 211). The following memo evaluates the budget of the City of Lake Oswego using GFOA’s Distinguished Budget Presentation Awards Criteria, and also compares it to the budget of the City of Detroit.