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Budgeting and Forecasting
Budgeting and forecasting are business processes essential to a company’s operations. Budgeting involves planning for revenues and expenses. Forecasting is a method of predicting trends based on historical and current events.
1,416 Questions
What is the difference between a proforma cash flow statement and a cash flow statement?
A cash flow statement is a financial statement that shows the changes in a company’s cash position over a given period.
A cash flow projection is an analysis of how the company will make money in the future.
The difference between these two statements is that the projection includes information about what will happen to a company's cash balance from now until then, whereas the statement only shows how much money has been made or spent during that time period.
as per accounting standards issued by icai depreciation can be charged by following two methods 1)straight line method 2)written down value method
but as per income tax act depreciation is allowed by way of wdv method.
Who is responsible for the preparation of an annual state budget?
The Office of Management and Budget of Illinois prepares the state budget. It also advises the governor on the availability of the given revenues.
Has Obama administration spent more money than all previous presidents?
No. Let's start with two stipulations, then go on to interpretations of existing facts.
Firstly, remember that CONGRESS spends the money, not the Presidents. That is, Congress appropriates (spends) Federal money - it decides the particular details as to where money is to be allocated. While any President has some persuasive effect on this spending, the truth of the matter is that Congress (not just this congress, but Congress as an institution over the last several decades) is to blame for the current debt situation of the country. Also, when accounting debt and budgets, one must look at Fiscal Years (FY), which run October to October, so a new President (who starts in January) doesn't actually get to propose a budget until over 9 months into his term.
Secondly, even if we ignored this fact (spending = Congress), the aggregate size of ALL federal spending over President Obama's term (FY2010 to FY2012 - the current FY) is roughly 11 trillion dollars. Given that, even in absolute dollar amounts (i.e non-inflation adjusted dollars), the size of the US budget had been increasing about $100 billion (5%) per year for about 20 years now. [EXCLUDING the war costs in FY 2003-2009, which were "left off" (hidden from) the budget accounting.]
Accordingly, for instance, the size of the federal budget in 2000 was about $1.8 Trillion, and about $2.4 Trillion in 2005, one can see that the aggregate amount of money spent during Barack Obama's Presidency is, while notably more than predecessors, is not outlandishly so. Roughly speaking, President Obama's 3 FY budgets are about equal to the last 4 FY budgets under his predecessor, G.W. Bush, assuming one does not include the "emergency" war appropriations. If one includes the war appropriations, then Obama's first three years spent about 10% more than Bush's last three years.
So, the absolute answer to the question, as posed, is factually a NO.
The link in the related links section shows a graph that has been verified to be based on facts and it shows the *growth* in spending is well below all the Presidents back through Ronald Reagan's term.
See the discussion section for additional comments, opinions and discussion. Please add additional discussion in that section.
What is another name for cash flow statement?
Other name of income statement is “Profit and loss account†as this statement shows all the incomes and expenses of one fiscal year and at the end either there is profit or loss so that’s why it is called “profit and loss statement†as well.
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FIFO method is based on the actual cost of each particular unit of inventory. In this method, inventory which is purchased first is sold out first. It ensures that old inventory is not piled up in storage and most companies use this method to evaluate their inventory.
How do you email squawk box on cnbc?
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plz hz 4 my course work help me It is a cost accounting technique whereby standard product costs are compiled and subsequently compared with actual costs as recorded by the production process.
Advantages of adequate documentation of a data processing function?
Documentation allows people to understand, use and adapt the function they are using without having to read and comprehend all of the source code (and they may not even have access to the source code). Additionally, documentation can be updated as the code is modified, ensuring that users and programmers are on the same page.
How do I compute predetermined overhead rate as a percentage of direct labor costs?
Predetermined overhead rate = Est. total Manuf. Overhead Cost / Est. total amt of allocation base
In this case, allocation base would be direct labor (as opposed to machine labor).
Hope this helps
How are the functional areas of management related?
Carter, Inc. can make 100 units of a necessary component part with the following costs:
Direct Materials$120,000Direct Labor20,000Variable Overhead60,000Fixed Overhead40,000
If Carter can purchase the component externally for $220,000 and only $10,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
How do you do the forcasting high and low method?
When forecasting the total cost at various levels of activity (say production) complications can be encountered when cost behaviour is semi-variable. That is part of the cost is fixed and part of the cost is variable. If this is the case then you cannot simply increased tye total cost by the increase in the level of production. For example if the following data have been extracted from cost records.
Production level Cost
1,000 units £2,500
2,000 units £4,500
What would the level of cost be for 4,000 units. Well it certainly would not be £9,000, i.e. twice the cost of producing 2,000 units.
We can predict the level of cost using the high low method.
If we go back to basics we know that fixed costs do not change due to changes in level of activity and that variable costs will change directly in proportion to changes in level of activity.
As the fixed cost element of total cost at 1,000 is the same as the fixed cost element of total cost at 2,000 units, we assume that the change in total cost between the two levels of activity is entirely due to the variable cost per unit. So the first thing we can do is calculate the change in activity and the change in total cost between the highest and the lowest level of activity.
Production level Cost
High 2,000 units £4,500
Low 1,000 units £2,500
Change 1,000 units £2,000
Therefore we can calculate the variale cost per unit at £2 per unit (£2,000 / 1,000 units)
Using the equation for total cost of y = a + bx we can calculate the fixed cost
y = total cost
a = fixed cost
b = variable cost per unit
x = level of activity
We can select either the highest or the lowest level of activitity values to substitute in the equation. Here I use the high level
y = £4,500
x = 2,000 units
b = £2 per unit (calculated above)
£4,500 = a + (2,000units x £2)
£4,500 = a + £4,000
Making a the subject of the equation we get
a = £4,500 - £4,000
a = £500
Now we can forecast the total cost for 4,000 units of production:
y = a + bx
y = £500 + (4,000 units x £2)
y = £500 + £8,000
y = £8,500
So the forecst cost to produce 4,000 units would be £8,500
N.B. The high low method has limitations and if multiple data are availablke regression analysis is more accurate.
How should patients be prepared for a fasciotomy?
Little preparation is done before a fasciotomy. When the fasciotomy is related to burn injuries, the fluid and electrolyte status of the patient are constantly monitored.
static planning budget and flexible budget
Running Account Bills: Raised for periodic payments for an ongoing projects, example for construction projects
How does each department in a company decide on a budget?
How a firm is run depends on the structure of corporate governance. In U.S. firms, most firms are run in a hierarchical model with clear chains of command over bureaucracies (i.e.) upper management decides what to do for lower workers). Given this system of decision-making, budgets are often determined simply by top management and passed down.
What does it mean to cut the budget?
It means that less money will be budgeted than in the previous year. Thus, the phrase, "cut the budget", indicates that one or more areas of a budgeted total amount of money will need to be reduced.
