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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
Budget variances are differences in expenditures from your original budgeted plan. This may happen if there is an expense during the month that one may not have planned for such as an automotive repair or doctor's bill.
Why are unadjusted trial balances run?
Preparing an unadjusted trial balance tests the equality of debits and credits as recorded in the general ledger.
savings and miscellaneous
What is an example of how a standard cost is established?
in a factory that produces personal computers, standard costs are often used for direct materials, direct labor, and variable overhead, at the unit level. Resource usage that can be traced exactly to what is to be produced is referred to as direct.
hey there, how do you calculate the unit selling price please? x
How do you calculate variable unit costs and total annual costs?
Annual units sold, 1000. Raw materials annual cost 650. Building rent annual cost 9000. If sales volume increased to 6000 units and 8000 units, what is the total annual cost and unit cost for fixed varible? ---------------------------- Cost per unit of raw material=650/1000= 0.65
Fixed cost(Rent)=9000 Fixed cost per unit= 9000/1000= 9.00 If the sales volume increases to 6000 units, then total cost= 12900 and cost per unit = 2.150
Variable cost+ fixed cost= (0.65*6000) + 9000= 12900 / 6000 = 2.15 If the sales volume increases to 8000 units, then total cost= 14200 and cost per unit = 1.775 (0.65*8000) + 9000= 14200 / 8000 = 1.775
How do you calculate income variance?
If looking for a percentage answer, you subtract the smallest number from the largest number and the divide the difference by the largest number.
Ex: $2000 - $1560 = $440 / $2000 = 22% Variance.
Check your work: $2000 x 22% = $440.
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
You cannot.
Sales and variable costs must be functions of the units (quantities) sold and produced.
Which of these does not describe a total comsumption budget?
It is designed to reach short-term goals
Financial Planning Models
Total cost of goods sold per unit consists of?
how much it will cost to produce and send out the product. It is usually more expensive to do this by unit than as a whole.
How zero-based budgeting may assist in budgeting plainning and control?
Zero budgeting assumes that unlike the traditional budgeting system, there are no "givens". By implication, the idea of using what happened last year as the starting figure for allocation does not arise. Every activity must justify afresh (as if it never existed) and merit any resource allocation to it. This provides an incentive to managers to be focussed in their planning, and goal oriented in their budgeting. Also, that managers are forced to plan, performance evaluation and control become easier .
Submitted by
DURODOLA VICTOR O
Nigeria
price (32)= 80000 + 24X
by using above equation profit can be calculated.
How do you compute current portion of long term loan?
calculate the principal due in one year together with the interest payable.
How do you continue to stay current with trends in your field Accounting fie ld?
There are several ways to stay current with trends in the accounting field. They include interactions with other accountants, subscribing to accountant themed magazines and publications, attending conferences and reading accounting websites and blogs.
What are sources of resistance to change?
- Self Interest
Changes may require a different skill set, affect power status, change relationships with others, social status or self-esteem, and there for be against the personal interest. - Uncertainty
People may be concerned as to how the change will affect their job and lives, and humanly expect the worst. - Lack of trust
The source of the change isn't respected or trusted. "What does he know about how we actually get things done here?". Especially if the change comes from outside the department. - Different perspectives
The change may be viewed from an entirely different perspective, for instance the engineers view v.s. the accountants view. This can happen especially when not all the angles have been considered. - Inflexibility
Some people are just intolerant to change. The are more vested in protecting the status qua no matter how clear the benefits of change would be.
Here are some countermeasures one can use to address these resistances to change
Self Interest Create a corporate culture where employees can feel confident they will be retained and valued for their skill set. If the department can't use the skill set anymore, the employee should feel confident that he can use his skills elsewhere in the company, or that he'll be helped to train new relevant skill sets.
Uncertainty Ensure sufficient information is communicated about the proposed change. Additional background information should be available. Option to ask questions should be available and always answered.
Give the organization sufficient time to get used to the idea, also communicating well upfront is helpful.
Lack of trust Change from within. Get a respectable colleague from the to be affected department(s) to join the project team. Collaborate to reach the proposed change, reach consensus. He or she can become an advocate for communicating the proposal to the affected department.
Different perspectives Ensure you have a well rounded team that can look from the different viewpoints. Include the to be affected departments in the discussion. Hear all the opinions upfront and include their feedback into the change. This provides a more well rounded idea.
Inflexibility Some people will always resist change. Having a trial period first can help ease them into this, also provides reassurance that if the change doesn't help, we can go back to the old situation. However, in the end, if the change is clearly beneficial, there may still be a few individuals that are unwilling to change along. This could be the deadwood of the organization that would be better suited to work elsewhere...
Why is important policies and procedures of the organisation?
Policies and Procedures are the strategic link between the Company's Vision and its day-to-day operations. But why is that so important? It's because well written policies & procedures allow employees to understand their roles and responsibilities within predefined limits. Basically, policies & procedures allow management to guide operations without constant management intervention.
How do you calculate gross amount for net amountas i need to find out the net amount?
For example :
if net amount is : $2.520,-- = 100%
SS = 7%
Tax= 18%
Gross amount is :excel = 2.520.- divided to ( / ) (100%-7%-18%)
=(2.520,--) / ( 100%-7%-18%) or = 2.520/(1 - 0.25) gross is : $ 3.360.--
SS is 3.360,- x 7% = 235.20
Tax is 3.360,-x 18% = 604.80
Net is : $3.360-$235.20-$604.80 = $2520 ( net )
RZ laya
What is the standard cost of repairing the 4 wheel drive for Tacoma 95?
No one can provide an accurate answer to this question. It depends on what is wrong with the 4wd.
Interim management is the temporary provision of management resources and skills. Interim management can be seen as the short-term assignment of a proven heavyweight interim executive manager to manage a period of transition, crisis or change within an organization. In this situation, a permanent role may be unnecessary or impossible to find on short notice. Additionally, there may be nobody internally who is suitable for, or available to take up, the position in question. Although there are historical antecedents (like the Roman dictatorship), the concept of interim management is usually believed to date back to the 1970s, when, in the Netherlands, permanent employees were protected by long notice periods and companies faced large costs for terminating employees. Hiring managers on a temporary basis was a solution.
There are several factors that make interim management the popular resourcing option that it has become today: # Speed. Interim managers can be in place within days as opposed to weeks (essential when time constraints are paramount). # Experience. Interim managers will be more than qualified for the position they are taking on and will therefore be stepping down in responsibility. They will also have past experience of similar challenges to the ones they are about to face. They should be equipped to have an immediate effect and be productive from the outset, minimising the risk of things going wrong and, more importantly, ensuring success. # Objectivity. Unencumbered by any previous involvement in company processes or staff relationships, interim managers should provide a fresh perspective and be free to concentrate on what's best for the business. # Accountability. Rather than taking on a purely advisory role (as a management consultant would), interim managers are responsible and accountable line managers who will implement and manage a business or project in their own right. # Effectiveness. Operating at or near board-level gives interim managers the authority to effect significant change or transition within a company - unlike a temp, they're not just there to 'hold the fort'. # Commitment. Interim managers are typically committed to an interim career. For them, this is never just something they are doing until a suitable permanent position is found. A good interim manager should enjoy the challenge of the different assignments, take great pride in maintaining the highest standards while realising that they are only ever as good as their last job. There are a number of different business situations that could result in the need for an interim manager. Typically, these could be situations such as crisis management, sudden departure, illness, death, change management, managing change or transition, sabbaticals, MBOs and IPOs, mergers and acquisitions, and project management. The interim management concept has now taken root in the UK, Germany, and Belgium, and is spreading elsewhere, most notably in Australia, the US, France, and Ireland. * Phase 1 : Select the manager and confirm the assignment The interim manager should be able to quickly adapt and analyse, to work autonomously, to be result oriented, stress resistant, communicative, etc. Also he must clearly understand the objective of his mission, potential deviations, means at his disposal and the company he gets involved with. * Phase 2 : Prepare the assignment Preliminary meetings should be used to gather information on the market, the company, the operational rules, the current businesses and the staff. Once on the job, he will have to quickly get his own opinion on many issues and persons; thus, all the information previously gathered will make this work easier for him. * Phase 3 : Operational start of the assignment The new manager should prepare his arrival well to ensure that his he gives an impression of authority and serenity right from the beginning. He will have to quickly implement the first levers of power: set up a management committee, build a circle of trustworthy people who will be his sources of information, etc... In this third phase, he quickly imposes his mark by setting the first rules and by taking some safe decisions. * Phase 4 : Observe, analyse … and navigate at sight When the circumstances are favourable, the transition manager takes some time to study the environment he is in charge of before determining how to achieve the defined goal. Mostly he must act quickly though. He may even have to take important decisions right from the first day. In that case he must do everything at once and to the best of his abilities - manage, observe and analyze the company in order to be able to get to the following phase as soon as possible. * Phase 5 : Action plan definition The action plan must be a mix of ideas from the interim manager, bringing an external point of view and expertise, and the best ideas from his staff who will feel valued when their opinion has been taken into account. Sometimes circumstances need a quick reaction and priority changes. It is very important though that some actions with strong impact are carried out as soon as possible. * Phase 6 : Execution and communication Once the interim manager has established his leadership and the action plan has been announced, he needs to prove himself. The action plan must remain the axis of the assignment. It can be adapted if some actions prove irrelevant or unfeasible. The regular publication of its progress is vital to show the team as well as the client the progress made to reach the objective. * Phase 7 : Power transfer Once the objective has been achieved, the interim manager finishes his mission by transferring to the succeeding management all his knowledge regarding the entity he was in charge of, the progress report of the action plan and his advice for the future. * Step 1 - Be clear about why you need an interim manager and define your objectives in a written brief. This helps providers to fully understand your requirements and enables them to find the most appropriate interim executive for your organisation * Step 2 - Secure budget approval before engaging a service provider. Interim management is a high-value solution to address key projects or meet urgent leadership needs. Understanding the benefits the assignment will bring is essential to setting and approving an appropriate budget prior to hire * Step 3 - Ensure the key sponsor of the interim executive controls the hiring process and is involved in the selection. Nominate a point of contact responsible for providing ongoing, swift and responsive decision-making (the world of interims moves fast!) * Step 4 - When selecting an interim provider ask for proof of their credentials: details of past assignments, their client base, insurances and processes * Step 5 - Insist on a face-to-face briefing with the interim provider prior to engagement. This is a people business, and you need to meet the people with whom you are working * Step 6 - Expect a carefully selected shortlist and small number of CVs, who the service provider knows or has/will interview. You are paying them to find the right person, not inundate you with CVs * Step 7 - Ensure that your provider gives you written Terms and Conditions, Pricing Schedules and the specific details before signing the contract * Step 8 - Expect a full documentation pack upon contract including notes of reference checks * Step 9 - Expect the provider to keep in touch with you and the interim once the contract is up and running, with regular feedback and guidance * Step 10- Expect an end of assignment report, to help with your internal audit and governance and gain any last insights from the interim
Indian economy in next 3 years?
India growing fast i am watching from aurangabad.India soon cover from corruption scandal.poverty reducing slowly.independent peoples are generated.i will grow faster next 3years
How are state budgets different from federal budgets?
State budgets are, by nature, smaller than the Federal budget and are much more specific in their outlay. Federal budget are huge and have a proportionate amount of paperwork associated in providing for the good of the nation.
What is an example of an inadequate budget control system?
exlpain translates strategic plans into department action
