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Preparing a budget allows for the establishment of short or long- term goals. Most commonly, the time frame for a budget is one year however budgets can be set over a long period of time. A long- term budget as a minimum should cover a period of five years (Kimmel, 2009). Determining whether to set a short or long- term budget depends on the needs of a company. Because a long- term budget is generally used to measure progress it would be more likely to be implemented in a building project such as a bridge or highway. Also, a long- term budget contains far less detail than a short- term budget. In my opinion, a long- term budget would be more difficult to create because of inflation and economic factors which is why research is a key step in the planning process.
A budget is only a piece of a master budget. A master budget incorporates numerous budgets constituting a plan of action for a specified time period (Kimmel, 2009). The budgeting process, depending on the size of the company, can be done by one too many individuals working together to achieve a goal or goals. Depending ...
Creating a budget in clinical research is very detailed, organized and specific towards each individual clinical research trial. When coming up with a budget you need to know what your limit is and stick to it. Negotiating a budget can be difficult, both sides need to collaborate and discuss the necessary and reasonable funds for the trial. There are limits to a budget which include no construction, travel is limited, and overall cost can’t exceed a set limit. (1, 3)
If you are in the process of saving for a home or condo in downtown San Diego but not quite sure how to start budgeting your income to meet the area’s high-cost of living, you can follow a very simple budgeting technique called the 50/20/30 rule. The rule states that you should spend 50 percent of your income on expenses and absolute necessities, 20 percent of your income should go toward your savings or financial goals and thirty percent of your income should go toward flexible spending, otherwise known as your personal spending habits.
Budgets are the financial requirements and consequences of plans. Budgets are made with specific goals in mind. Budgets can be used to lower living expenses, increase savings, or to save for a purpose such as: education or retirement. Budgeting is a process that involves these actions: defining goals, gathering information, forming expectations, reconciling goals and data, monitoring goals and variances, adjusting budgets, and redefining goals.
Budgetary planning may differ between organizations. Single-period budgets and rolling budgets have methodologies that provide advantages and disadvantages that may make one budget time frame better than another. A single-period may require less time in planning during a fiscal year, but is less accurate than a rolling budget that is continuously planned on a repetitive basis. In either case, budgets are planned in advance in order for a company to operate profitably, and less so to have "actual results equal budgeted results." (p. 496)
Top-down budgeting is the preferred method of budgeting for government agencies and many organizations (Ljungham). The methodology of top-down budgeting is described as “dominated by top members of the executive branch and the legislative branch” (Williams & Calabrese, 2011, 178). The methodology entrusts top members to make annual budgeting decisions for their organizations. In many instances, top members also use this time to set annual program or department goals and targets. Top members make these decisions without solicitation of input from bottom levels of an organization. This can result in operational and logistical constraints in the lower levels of an organization when plans are implemented (Williams & Calabrese, 2011). Additionally, it can serve as a source of frustration for staff when uninformed budgeting decisions create consequences. This is particularly true when staff is tasked with making things work in the aftermath of budgeting decisions, despite having clear or attainable goals and budgets. Like all budgeting methodologies, there are benefits and difficulties.
Participative Budgeting is the situation in which budgets are designed and set after input from subordinate managers, instead of merely being imposed. The idea behind this sort of budgeting is to assign responsibility to subordinate managers and place a form of personal ownership on the final budget. Nearly two decades of management accounting research has resulted in equivocal findings on the consequences and effects of participative budgeting (Lindquist 1995). Participative budgeting certainly has various advantages, these include the transferral of information from subordinate to superior increased job satisfaction for the subordinate, budgetary responsibility and goal congruence. Its disadvantages include budgetary slack and negative motivation, however it is the conditions in which participative budgeting takes place determines whether the budgeting process is successful. The conditions are dependent on various factors such as the level of participation, level of subordinate influence, the extent to which budgetary slack takes place, volatility, job related information, and the complexity of the budget.
Quantitative plans are called budgets. Budgets are prepared to impose cost controls on the activities of an organization (Chenhall, 1986).Budgets are then used to evaluate the performance of the management and budget itself is considered as a standard to evaluate the performance Solomon, 1956). The purpose of the budget is also to implement the strategy of the organization and communicate it to the employees of the organization Rickards (2006). The change in the external environment has led to the change in the budgeting approaches from the initial cash based budgets to the zerio based budgets (Bovaird, 2007).
A budget is a financial tool that can help one to make better financial decisions, budgets are action statements that give an account of what is going on to map the next choices. They can also be defined as a plan of expenditure. The budget process involves defining goals and gathering information, forming expectations and reconciling goals and data, creating the budget, monitoring actual outcomes and analyzing variances, adjusting budget, expectations or goals and redefining goals. (Siegel and Yatch, 2009). Since creating a budget requires one to look at the past behaviour, the financial statements and the current situation, a budget projects how things should work out.
A budgetary estimate is used to allocate money into an organization's budget. Many organizations develop budgets at least two years into the future. Budgetary estimates are made one to two years prior to the software project completion. The accuracy of budgetary estimates is typically ten percent below to twenty-five percent above the actual final cost of the project.
Making a personal budget can be a very simple or a very arduous task, depending on how one goes about it. One must find stable monthly expenses, such as rent, and manage the rest of their income around that amount. Depending on the steps an individual takes, this can be a very simple process. For this project, I was assigned to make three personal budgets for three different situations. This paper will outline the first.
Staffing varies according to acuity, number of patient’s, and knowledge base. The operating budget will have a variety of staff levels to factor in along with other resources to run a unit effectively. In this budget acuity has gone up in the last two years and maybe the manager did not plan for this. With the acuity increasing dramatically over two years the focus should be in the cross-training of nurses from other units, which will help during the high acuity times. Cross-training will have a minimal expense in the long run.
A University Student Budget Sheet In this assignment I will be consulting a university student’s Budget schedule I will be offering the student advice on how to solve problems when in dept by offering an student loan, grants etc. I will be referring to the budget schedule to what areas the student can cut sort on to cover the other costs mostly needed to be covered. UNIVERSITY STUDENT BUDGET SCHEDULE Mouthly Week 1 Week 2 Week 3 Week 4 Total INCOME DESCRIPTION University Student (Grant) £142 £142 £142 £142 £570 Interest and dividends £0 £0 £0 £0 £0 Savings £150 £0 £0 £0 £150 TOTAL INCOME £292 £142 £142 £142 £720 EXPENSE DESCRIPTION Beauty shop and barber £5 £0 £5 £0 £10 Cable TV £15 £0 £15 £0 £30 Clothing £50 £0 £50 £0 £100 Credit card payments £25 £0 £25 £0 £50 Electricity £50 £0 £0 £0 £50 Entertainment and recreation £25 £25 £25 £25 £100 Gas company £50 £0 £0 £0 £50 Gifts £15 £0 £0 £15 £30 Groceries and outside meals £15 £0 £0 £0 £15 Household £15 £10 £10 £5 £50 Laundry and dry-cleaning £3.
Budget is combining your income and expenses to decide how much money you are going to spend on an item. Budget is an important step to determine your financial health and financial stability. It’s an important financial tool because it can help plan for expenses, cut cost were unneeded, save for future goals, plan for emergencies that occur inexpediently, and list what you are spending and saving.
Capital budgeting is one of the primary activities of a company. Most of the company uses capital budgeting for decision making process of selecting and evaluating long-term investment. The company have to make a right decision with respect to investment in fixed asset such as purchasing of new equipment and delivery vehicles, constructing additions to buildings and many more. The decision must be right because of the project involve huge amount of cash outflow and it is committed for many years.
It requires an adequate and sound organizational structure, that is, there must be a definite assignment of responsibility for each function of the enterprise. Budgeting compels all the members of management, from the top to bottom to participate in the establishment of goals and plans. Budgeting compels departmental managers to make plans in harmony with the other departments and of the entire enterprise. Budgeting helps the management to put down in figures what is necessary for a satisfactory performance. Budgeting helps the management to plan for the most economical use of labor, material and capital. Budgeting tends to remove the cloud of uncertainty that exists in many organizations, especially among lower levels of management, relative to basic policies and objectives. Budgeting promotes an understanding among members of management of their co-workers' problems. Budgeting force management to give adequate attention to the effects of general business conditions. Budgeting aids in obtaining bank credit as banks commonly require a projection of future operations and cash flows to support