What Is Encumbrance?

codes to be nationally accepted in crucial when dealing with different hospitals. Let's say you are an individual that was out of town, got

To distribute and account for all of the student aid dollars given to students each year and to do this accurately (over 6200 schools)

are costs that have already been incurred and cannot be changed by any decision made

This essay refers often to the term "cost avoidance". Cost avoidance refers to activities that reduce future spending. That is to say, future spending would have increased without the cost avoidance activities.

Planning is a function that is employed by every organization in projecting the future outcome of the firm. Successful firms achieve their goals through the use of different types of budgets. These budgets include, production budget, sales budget, labor budget and expenses budget. These budgets also show the targets that should be achieved by the firm within the budgeted time plan.

The second is listed at 150000 in the Selling, General & Administrative Budget within the Facility & General Operations Level Expenses. The last of the three line item that references to Utilities shows up in the same exact section and has the amount of 54000. This was extremely convoluted and seems redundant for the Utility costs. Beyond the confusion, the totals of the three Utility costs came out to 259747 for the year 9 Utilities expenses. These totals in cost for the utility related expenses seems very high compare to the year 8 utility expense of 150,000. With this said CB should consider a revised budget that is more detailed and gives a clearer explanation for the line items pertaining to the utility expenses.

Lastly, we have the program budget, which designate funds to groups that need to achieve specific goals. Program budgets do not allocate funds to company departments, but to company’s activities. Program budgets are very difficult because there are no specifics to go on, they usually have to go by an estimate, and try to cover all aspects of possibilities (Halliman, 2006).

The general fund type consists of general revenue and general services. The special revenue fund type consisted of higher education improvement, cultural facilities building, and Clean Ohio Conservation Program. Next, the capital projects fund type consisted of: mental health facilities improvement, parks and recreation improvement, administrative building, and juvenile correctional building. The enterprise fund type consisted of: liquor control, state lottery, and workers’ compensation. Finally, the agency fund type consisted of: agency, accrued leave liability, and volunteer fire fighters’ dependents. The totals for each of the fund types are: general government ($1,015,491 for adjusted appropriations (aa) $875,7998 for total committed appropriations (tca), $139,693 for uncommitted appropriations (ua), and $888,605 for budgetary expenditures (be); total community and economic development fund: $2,042,882 for adjusted (aa), $1,374,832 for total committed, $668,050 for uncommitted, and $1,250,961 for expenditures; total local government support and tax relief fund: $4,110,991 for adjusted, $3,943,201 for total committed, $167,790 for uncommitted, and $3,943,201 for expenditures; capital outlay fund: $1,133,362 for adjusted, $446,471 for total committed, $686,891 for uncommitted,

Program Budget: In Program Budget, expenditures are based primarily on programs of work and secondarily on character. Proposed expenditure in the budget is set by analyzing function. It allows top management to focus on objectives for which funds are allocated. It is easy to find for which function fund is used. However, program budget does not properly evaluate performance.

* Accumulation of costs exceeds the amount expected for acquisition or construction of the asset

Assume that the CWC has adopted the budget as developed in Case I even though it does not hit the 5% budget surplus target. Now they want you to allocate the budget into functional areas. Revenue is not allocated to functions. However, expenses are allocated to functions using the percentages shown in the following section.

As shown in the Excel screen capture, the flexed budget adjusts line items for labour, raw materials, and

“It’s clearly a budget. It’s got a lot of numbers in it” (George W. Busch 2005). This definition of a budget can be supplemented using the Oxford dictionary, which states that a budget is an estimate of income and expenditures for a set period of time. Nowadays almost every business uses budgets and managers use them as a tool in order to set targets. In other words managers can, with the use of budgets, explain in a financial way what are the

The budgeting system allows the managers of each department monitor their expenses in which budgets have been set for materials, salaries and legal expenses amongst others.

There are different costs that respond to the different activities like variable costs are directly associated with the products sold. The cost behavior patterns of selling, general, administrative, and other operating expenses are determined, and these expenses are budgeted accordingly. For example, sales commissions will be a function of the forecast of either sales dollars or units. The historical pattern of some expenses will be affected by changes in strategy that management may plan for the budget period. In a participative budgeting system, the manager of each department or cost responsibility center will submit the anticipated cost of the department 's planned activities, along with descriptions of the activities and explanations of significant differences from past experience. After review by higher levels of management, and perhaps negotiation, a final budget will be established. Because of the necessity to recognize cost behavior patterns for planning and control purposes, overhead costs will be classified as variable or fixed.