Free Essay

Budget Preparation

In: Business and Management

Submitted By jennice91
Words 255
Pages 2
EXERCISE IN SPREADSHEET - D
TENTATIVE ALLOCATION OF FUNDS IN RUPEES LAKHS
| | |1 |2 |3 |4 |5 |6 |
| |DEPARTMENT |2012-13 |2013-14 |2014-15 |2015-16 |2016-17 |2017-18 |
|1 |HR |23 |27 |29 |23 |21 |35 |
|2 |MARKETING |48 |48 |38 |59 |24 |29 |
|3 |SALES |34 |42 |24 |39 |47 |49 |
|4 |FINANCE |12 |18 |27 |35 |36 |39 |
|5 |R&D |56 |58 |59 |54 |59 |60 |
|6 |IT |37 |39 |49 |46 |38 |49 |
|7 |PRODUCTION |89 |90 |102 |105 |99 |105 |
|8 |MAINTENANCE |32 |36 |38 |35 |32 |29 |
|9 |PURCHASE |57 |49 |38 |34 |29 |24 |
|10 |ADMIN. |15 |15 |18 |18 |19 |20 |

|PREPARE A SPREADSHEET FOR THE BUDGET EXERCISE |
|WHICH CAN, AMONGST OTHERS, ANSWERS THE FOLLOWING QUESTIONS: |
|1. What is total budget for each of the departments for the next six years? |
|2. What is the total budget for each of the next six years? |
|3. What is the total budget for the next six years? |
|4. In case the budget for any of the departments is increased by "x1…x10" percentage |
| find the new answers for the questions 1 to 3. |
|5. In case the budget for any of the years is increased by "y1..y6" percentage find |
| the new answers for the questions 1 to 3. |
|6. In case the budget for any of the departments is increased by "x1…x10" percentage |
| and any of the years is increased by "y1…y6" percentage find |
| the new answers for the questions 1 to 3. |

Similar Documents

Premium Essay

Goverment Accounting: Budget Preparation Phase

...INTRODUCTION: The budget preparation phase starts with the Development Budget Coordination Committee (DBCC). It is headed by the DBM Secretary and its members are the Secretary of Finance, the NEDA Director-General, and the Bangko Sentral Governor, with the Office of the President for general oversight. The NEDA provides the over-all macro-economic assumptions with which budgetary levels are to be determined. They involve the projected Gross National Product (GNP) real growth rates, inflation rates, 91-day treasury bill rates, the London Interbank Offered Rates (LIBOR) rates, foreign exchange rates, population growth, and other economic parameters. The Department of Finance (DOF), the Bureau of the Treasury, the Bureau of Internal Revenue and the Bureau of Customs help the DBCC in determining the sources of financing. They project the revenues that will be generated for the budget year as well as the borrowings that may have to be tapped. The DBCC determines the overall economic targets, expenditure levels, the revenue projection, deficit levels and the financing plan. It submits them to the President and the Cabinet for approval. Once these are approved, the DBM issues the Budget Call. This requires agencies to prepare their budgets in accordance with the said guidelines, macro-economic assumptions, and ceilings. The DBM spells out guidelines, procedures, and timetables. Agencies undertake their own internal consultations....

Words: 2514 - Pages: 11

Premium Essay

Budget and Control

...This paper will elaborate the budget preparation and implementation undertaken by Adama municipality....

Words: 1823 - Pages: 8

Premium Essay

Accoutning

...Chapter 8—Absorption and Variable Costing, and Inventory Management TRUE/FALSE 1. Variable costing and absorption costing income statements may differ because of their treatment of fixed factory overhead. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 8-1 NAT: BUSPROG: Analytic STA: AICPA: FN-Measurement | IMA: Performance Measurement | ACBSP: APC-27-Managerial Accounting Features/Costs KEY: Bloom's: Knowledge NOT: 1 min. 2. Inventory costs under variable costing include only direct materials, direct labor, and variable factory overhead. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 8-1 NAT: BUSPROG: Analytic STA: AICPA: FN-Measurement | IMA: Cost Management | ACBSP: APC-27-Managerial Accounting Features/Costs KEY: Bloom's: Knowledge NOT: 1 min. 3. Inventory under absorption costing includes only direct materials and direct labor. ANS: F Inventory under absorption costing includes direct materials, direct labor, variable factory overhead, and fixed factory overhead. PTS: 1 DIF: Difficulty: Easy OBJ: LO: 8-1 NAT: BUSPROG: Analytic STA: AICPA: FN-Measurement | IMA: Cost Management | ACBSP: APC-27-Managerial Accounting Features/Costs KEY: Bloom's: Knowledge NOT: 1 min. 4. If the number of units produced in a period is larger than the number of units sold in a period, absorption costing income will be higher than variable costing income. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 8-1 NAT: BUSPROG: Analytic STA: AICPA: FN-Measurement | IMA: Cost Management | ACBSP:......

Words: 33039 - Pages: 133

Premium Essay

Case 9-2

...SUMMARY OF CHAPTER 9 BUDGET PREPARATION Nature of Budget Budgets are an important tool for effective short-term planning and control in organization. An Operating Budget usually covers one year and states the revenue and expenses planned for that year. It has certain characteristics like: * A budget estimates the profit potential of the business unit. * It is stated in monetary terms, although the monetary amounts may be backed by the non-monetary items like units produce and sold. * It generally covers a period of one year except the seasonal businesses. * It is a management commitment that managers agree to accept responsibility for attaining the budgeted objectives. * The budget proposal is reviewed and approved by an authority higher than the person preparing the budgets. * Once approved the budgets can be changed only under specified conditions. * Periodically, actual financial performance is compared to budget, and variances are analyzed and explained. * The budget is different from strategic planning and forecasting. Uses of Budget Preparation of an operating budget has four principal purposes. 1. Fine Tuning the Strategic Plan: * The strategic plan of the last year can help the managers in preparation of the budgets. * And budget preparation also provides an opportunity to make decisions that will improve performance before a commitment is made. 2....

Words: 2255 - Pages: 10

Premium Essay

Public Sector Auditing

...IBS/1595/11 ……………………… IBS/1586/11 ……………………… IBS/1467/11 ……………………… Question 1 Evaluate the steps in the preparation of a local government budget. The term budget is derived from the French word "Budgette" which means a "leather bag" or a "wallet". In simple terms, budget shows the income and expenditure of government or an organization for a specified period. Budgeting on the other hand is the process of preparing a budget. An annual budget, sometimes referred to as the operating budget, is the document that details the financial plan of the local government or school district for a fiscal year. The annual budget is perhaps an entity’s most vital document and should be developed using all of the most current and accurate information available. The budget is not just a financial plan; it also has legal implications, which are delineated in the “Implementing the Budget” section of this guide. Furthermore, the budget process does not end with the adoption of the budget. Instead, the budget is a document that must be monitored and amended from...

Words: 1253 - Pages: 6

Premium Essay

Budget

...Budget: An estimate of income and expenditure for a set period of time. Budget (from french bougette) generally refers to a list of all planned expenses and revenues. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. The budget of a government is a summary or plan of the intended revenues and expenditures of that government. Budget Preparation A full understanding of the budget planning and preparation system is essential, not just to derive expenditure projections but to be able to advise policymakers on the feasibility and desirability of specific budget proposals, from a macroeconomic or microeconomic perspective. It is much easier to control government expenditures at the "upstream" point of budget preparation than later during the execution of the budget. Thus, fiscal economists and general budget advisors need to know: * what is the framework in which budget decisions are made; * who is responsible for planning and preparing the budget; * what are the basic steps; * what are the typical weaknesses in procedures and how can these be overcome; and * how can changes in budget plans be programmed and targeted? Answers to these questions are set out in the subsections below. Budget planning and preparation are (or should be) at the heart of good public expenditure management....

Words: 12266 - Pages: 50

Premium Essay

Week 4 Essay Questions

...Week 4 Essay Questions Essay Question #1: What is your total budget for this project? Was the project within the budget as set forth by the board of directors? In the Microsoft Project that I have compiled it gives an estimated total budget of $2,631,468 which is $118,562 dollars less than the total approved budget for the Huntsville Project of $2,750,000 as set forth by the board of directors. This amount would be under the approved budget. Essay Question #2: What is your budget for the Planning Phase? What is the Planning Phase duration in weeks? The Budget for the Planning Phase is $283, 882. The planning phase is to be completed in 10 weeks consisting of 1,066 hours. The planning phase breaks down as followed: Task Name Fixed Cost Fixed Cost Accrual Total Cost Recruit and Train Managers $0.00 Prorated $4,608.00 Select Real Estate Consultant $0.00 Prorated $1,096.00 Create Pre-Production Plan $0.00 Prorated $3,272.00 Create Production Plan $0.00 Prorated $3,504.00 Establish Building concept $0.00 Prorated $4,312.00 Create Building Design $32,000.00 Prorated $34,568.00 Procure Site $216,000.00 Prorated $221,952.00 Select General Contractor $0.00 Prorated $1,732.00 Obtain Permits & approval $3,200.00 Prorated $7,574.00 Essay Question #3: What is your budget for the Preparation Phase? What is the Preparation Phase duration in weeks? The Budget for the Preparation Phase is $1,282,442....

Words: 541 - Pages: 3

Premium Essay

Assignment on Vat Rules in Bd

...Expertise in preparing financial statements, payroll accounting, monitoring daily cash transaction, developing annual budget and recording all financial activities. Professional Excellence: 1. Accounting Officer-Quality Paper Mill Limited, a Concern of Double A Pulp and Paper Industries Limited, House No # 100, Block # B, Road # 4, Chandgaon R/A, Chittagong. Accounting Officer (June 2011 to till now): 1. Prepare IBC, Send to HQ approval and procedures for payment. 2. Prepare Monthly Item wise Budget. 3. Prepare Journal Entries Monthly Basis. 4. Prepare monthly accounts. 5. Deduction of VAT, Income Tax from vendors or Suppliers and employees income tax Statements according to the rules and regulation of Bangladesh Govt. and deposit through government treasury. 6. Prepare payroll accounting. 7. Prepare voucher, invoice approval from, expense with and without receipt from employees, voucher registration. 8. Prepare fixed asset register. 9. Assist the auditor to complete the audit related activities. 10. Preparation of Financial Statement to top level Management. 11. Bank reconciliation with Operation & Sales A/Cs. 12. Preparation of Monthly & Yearly Budget for Top Management. 13. Preparation of C’s reports for Insurance companies, Software companies, Freight forwarding agencies’....

Words: 958 - Pages: 4

Premium Essay

Term Paper

...The preparation of budgets on an annual basis has been strongly criticized on the grounds that it is too rigid and ties a company to a 12 month commitment, which can be risky because the budget is based on uncertain forecasts. (Drury C (2008)) Stages for preparation of budget According to Drury C (2008) analyze the important stages in budget process; 1. Communicating the details of budget policy and guidelines...

Words: 3217 - Pages: 13

Premium Essay

Importance of Excel in Financial Maths

...In preparation of business reports there are a few steps were taken, first preparation of the records in an excel spreadsheet, after spreadsheet are complete a few steps are followed to create a report wizard excel, Excel skills are as well important in doing this, once the report has been prepared the reports can further be simplified by using simple Excel shortcuts to give short and easy to understand reports (Nugus, 2010)....

Words: 631 - Pages: 3

Premium Essay

Project Mgmt Wk4 Essay Q &a

...What is your total budget for this project? The total budget for this project will be met with the original figure of $2,750,000 that was presented in the project scope and charter. Yes, the project budget that was set forth by the board of directors will remain the same. The budget for the Planning Phase is as follows: General Contractor $2800.00; Building Design $32,000.00; Site Cost $216,000.00; Permit $3,200.00; Architect $2,600.00; Personnel Director $4,000.00; Real Estate Consultant $2,200.00; Accounting Director $1760.00 this planning phase budget totals to $264,560.00. The duration of the planning phase will be no longer than 4 -6 weeks. What is the budget for Preparation Phase? The preparation phase budget is the following: Building Cost $1,200,000.00 and Landscaping $26,000.00 which the total was $1,226,000.00. The duration of this will be 40 weeks that is including the landscaping. The Landscaping will be last of the preparation once the building is up the landscaping will be done. As your project launches, what are some of the key performances indicators that you will monitor and control? As the project continues to move forward I would continue to be proactive throughout the duration of the project. Weekly meeting are essential to have with team members to update the project status. Bi-weekly meeting are also essential with stakeholders and project teams in the project to update them on the status of the project....

Words: 419 - Pages: 2

Premium Essay

Financial System of the Rf

...Functions of the Ministry of Finance: - Public finance - the country's economic analysis, preparation of long-and short-term forecasts of its development - State budget - organization of work on the formulation and enforcement of the federal budget, forecasting and preparation of the consolidated budget of the Russian Federation; - Insurance; - Money Supply - State Loan - release of government domestic borrowing of the Russian Federation, agreements with the Central Bank for a loan to cover the federal budget deficit and other purposes; - Monetary relations - Preparation of proposals for improving the monetary and credit relations with foreign countries...

Words: 663 - Pages: 3

Free Essay

Public Budgeting

...The Kosovo budget is prepared by The Ministry of Finance in coordination with organizations, and has to be approved in the end by the Assembly of Kosova. The budget process in Kosovo is regulated by the Law on Public...

Words: 1706 - Pages: 7

Premium Essay

Oberoi Crm

...Preparation of Budget of an event For a person new to the financial aspects of running an event, the planning of a budget may not be as easy as it first appears, since a great deal of information has to be collected which might not be obvious at the start. However, the time & effort put into careful preparation of a budget is extremely important to the success of the event. The budget for an event may be no more complicated than a list of revenues & costs, or it may be vastly complicated. Either way, it has to be determined with the objectives of the event in mind. So, what is the financial objective? Is the event intended to make money or simply to cover its costs? If it is to cover costs, what is the total amount that can be spent, specified either by the clients or by the organizing committee? Some Common Budgeting Mistakes • Ignoring objectives of the event when setting the budget. • Plucking figures out of the air before finding out how much the event is going to cost. • Not involving everyone concerned in the budget preparation & failing to identify the full range of costs accurately. • Being over-optimistic about the demand of the event or failing to find a venue with enough capacity. • Overlooking subsidiary issues such as costs of ensuring safety & security, tax etc. • Not having enough capital or start-up funds to get the event off the ground, given the need for deposits or advance payments of various kinds....

Words: 401 - Pages: 2

Premium Essay

Pm586 Week 4

...What is your total budget for this project? Was the project within the budget as set forth by the board of directors? The total budget for the project is $2,634,172. This amount is about $100,00 less than the current allotted amount of $2,750,000, showing that the project is currently within budget. To continue on this projected path of being within budget, we would need to ensure that the current budget allocations for activities such as training and recruiting of staff members is kept. We need to ensure that the personnel that we recruit are well trained to or can be easily trained so that no extra monies are spent . 2. What is your budget for the Planning Phase? What is the Planning Phase duration in weeks? [5 points] The current budget for the Planning Phase of the Huntsville Project is $285754 with duration of roughly10 weeks. This Phase of the project is scheduled to last from April 18th 2011 to June 24th 2011. 3. What is your budget for the Preparation Phase? What is the Preparation Phase duration in weeks? The current budget for the Preparation Phase of the Huntsville Project is $1,282,441 with duration of roughly 49 weeks. This Phase of the project is scheduled to last from June 27th 2011 to June 27th 2011 to May 18th 2012. 4. As your project launches, what are some of the key performance indicators that you will monitor and control? Why are these performance indicators critical to manage during the project?...

Words: 430 - Pages: 2