Budgeting and Forecasting

If your expenditures exceed your income, you could first evaluate and reduce discretionary spending, such as dining out or entertainment, to free up funds. Additionally, consider seeking ways to increase your income, such as taking on a part-time job or freelance work. Implementing a strict budget can also help you track and manage your finances more effectively.

To verify capital expenditures, you can review documents such as invoices for equipment or asset purchases, contracts or agreements related to construction or major projects, and purchase orders. Additionally, financial statements reflecting capital asset additions and depreciation schedules can provide insights into recorded expenditures. It's also important to examine project budgets and approval documents to ensure expenditures align with planned investments.

When setting out a cost budget you are using an estimated figure of what X will cost in the next Y months. This figure is not plucked out of the sky but calculated on prices at the time of budget creation plus addition % to cover the chances of inflation. When you reach the point of that expenditure it may be found that the cost will be

(1) As calculated

(2) Higher than calculated

(3) Lower than calculated

1,2, and 3 are the ACTUAL costs and can be compared against the Planned Cost data. Where the actual meets options 1 and 3 then the cost will normally be accepted. where the actual is option 2 then a review is undertaken to establish the need to allow the cost, reevaluated the need for the cost or to reject the expenditure outlay.

the actuals are recorded against the planned so that a historic pattern for the next planning term is used. It will also serve to inform the business plan of issues in future cost controls

The utility of management accounting is to take active and timely decision.

production budget

As an expense, loan interest should be placed in the debit side of the Profit & Loss A/c and not in the Trading a/c.

Indiscriminate spending can and does cause profits to be hit too a point where the company can be at risk. A spending plan will allow for a focus to be taken where a clear consideration as to what is bought and when its bought and if its actually required. This plan works hand in hand with the budget and can contain business cases for each spend entered in the budget and contingencies if a reduction or claw back in the budget is required.

I believe historical cost is the original cost @ time of buying. Replacement cost is the price it would cost you @ present day values

Somebody needs to define what is needed, when it is needed by, monitor that all activities come together and every team member is going in the right direction, control the budget in order to realize.Management is the process of choosing and coordinating all available organizational resources to accomplish the firms goals and objectives. Without appropriate management of these resources,...

In labor intensive industry direct labor cost is used as cost driver.

Spreadsheet capable for us to take financial information and maintain their financial records up to date.

you restart setting up another budget

You can always take college courses for the theoretical knowledge, but to get the "real life" knowledge, try Udemy lessons or TedTalks.

An objectives budget focuses on the specific goals and outcomes an organization aims to achieve within a certain period, aligning financial resources with strategic priorities. In contrast, an operational budget details the day-to-day expenses and revenues needed to run the organization, often covering a shorter time frame, such as a fiscal year. While the objectives budget sets the direction based on long-term targets, the operational budget ensures that the necessary resources are allocated to maintain routine functions and activities.

Yes it is, a non current asset is one that will last over 12 months, a current asset is one that will be used up within 12 months.

• Good Management realizes that their company is only as good as the staff they hire and when companies do not care about staffing as long as they can manipulate their staff into working hard and seeing production they often have more problems than they can handle. There is no excuse for any company Management to consider their staff less important than themselves.

We want to know the future value of cash invested or loaned today. We want to know the present value, or today's value, of cash to be received or paid at later dates.

Daily Usage X # Of Days to receive Order X Safety Factor

Nada!

This statement is a projection of the sales expected in a given period of time, the cost of the merchandise that will be sold, and the operating expenses of the business.

Standard costs are monitored as a basis for determining the extent to which expectations are realized.

Budget figures may be based on actual, budgeted, or standard costs. These categories are not mutually exclusive.

The production budget needs to be exploded into budgets for direct material, direct labor, and manufacturing overhead.