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A static budget can be limiting when evaluating a manager's performance, as it does not account for changes in activity levels or unexpected circumstances that may arise during the budget period. It provides a fixed benchmark that may not reflect the actual conditions faced by the manager. Therefore, while it can offer some insights, a flexible budget that adjusts for actual performance levels is often more appropriate for a comprehensive assessment of a manager's effectiveness.
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List three factors that affect budget resource allocation decisions of managers provide appropriate examples for each of these three factors?
List three factors that affect budget resource allocation decisions of managers provide appropriate examples for each of these three factors?
What should be used in an organization's budget program?
To help managers plan and control the organizations performance
Why budget performance is a better criterion than past performance for judging managers?
Budget performance is a better criterion for judging managers because it reflects their ability to effectively plan and allocate resources in alignment with organizational goals. Unlike past performance, which may be influenced by external factors beyond a manager's control, budget performance directly assesses a manager's decision-making and operational efficiency. Additionally, focusing on budget performance encourages accountability and proactive management, driving continuous improvement and strategic alignment within the organization.
A method to monitor variance between actual performance and budget is described?
Monitoring income statements is a way that people can monitor variance between actual performance and budget. Managers can be assigned to look over income statements for clients.
Why budget is prepared?
Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:To control resourcesTo communicate plans to various responsibility center managers.To motivate managers to strive to achieve budget goals.To evaluate the performance of managersTo provide visibility into the company's performance
A statistic planning budget is suitable for planning and for evaluating how well costs are controlled true or false?
A static planning budget is suitable for planning and for evaluating how well costs are controlled.
By representing the budget and schedule associated with each task the Performance Measurement Baseline (PMB) allows program managers to?
compare the value of work performed to actual costs
How are senior managers personally involved in HSE managemen?
Senior managers overseeing the whole project, approving budget for HSE aspects.
Why are control accounts essential in a work breakdown structure or WBS?
They enable project managers to compare earned value against the project's performance in terms of scope, budget, and schedule
How budget assumptions and parameters can be used by managers in controlling the budget?
Budget assumptions and parameters provide a framework for managers to evaluate financial performance and make informed decisions. By establishing expected revenues, costs, and economic conditions, managers can set realistic targets and assess variances between actual and budgeted figures. This helps in identifying areas that require corrective action, ensuring resources are allocated efficiently. Ultimately, these assumptions guide strategic planning and operational adjustments to achieve financial goals.
What are some examples of performance goals for project managers that can help drive success and achievement in their roles?
Some examples of performance goals for project managers include meeting project deadlines, staying within budget constraints, effectively communicating with team members, resolving conflicts efficiently, and continuously improving project processes. These goals can help project managers drive success and achieve their objectives in their roles.
What is controllable spending?
Controllable spending is simply spending that a given manager has control over. Controllable spending is examined in evaluating the budget performance of the manager who had control, in seeing how well he managed costs for his unit.
