...Budgeting is a key component in management short and long term planning” I agreed that budgeting is important to management short and long term planning. Budgeting is important to management as it helps people on making decision whether they have enough money to progress through to the next step of planning, expanding the business and earning profit for themselves. If budgeting or planning doesn’t exist in management, there is a risk on business spending more money than earning it, in other words, not spending enough money to expand the business and stay on competitive level. Budgeting is also helpful in planning the years ahead. For example if a company are planning to purchase a new product, budgeting may help to decide whether how much money are needed to spend. All these planning takes time and money, so budgeting is a key component here by acting as a timetable on when the money is needed, how much amount is needed and what results to expect as the money and effort have been use on whether the company is making any profit. Budgeting is an important planning tool, as other planning strategy such as marketing expenditures or salary levels failure to compromise it will affect the company planning term. So every decision must be well plan and decide to meet the objectives in order for the company to be successful. A budget also helps to keep track on the business whether the company is earning profit and making any necessary changes if needed. If a new business doesn’t...
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...I agree the statement "Budgeting is a key component in management short and long term planning.". A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. It means budget is very particular plan for a company so that a company can actually know about the financial problem. In business, budgets help you determine how much money you have and how you will use it, and help you decide whether you have enough money to achieve your financial goals. As part of a business plan, a budget can help convince a loan officer that you know your business and have anticipated its needs. Budget is not like target. Target can leading a company to know what they actually needs to do. But budget can help a company to do it right. It can help a company on financial and strategy. A company's budget is a bit more involved. Most companies will start with a master, or static, budget. A static budget is a budget with numbers based on planned outputs and inputs for each of the firm's divisions. It's the first part of budgeting, which determines how much a company has and how much it will spend. These are projected amounts and the company expects to stay within these limits. To figure out the numbers, mangers make use of economic forecasting methods to determine a realistic static budget. In order to make the most effective use of your budgets, you will want to establish reporting devices. These will include periodic reports and...
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...I agree the statement "Budgeting is a key component in management short and long term planning.". A budget is defined as a plan of operations based on a given estimate of expected income and expense in the future. As such, it is thought of as an action plan, outlining an organization's financial and operational goals. The budget expresses the quantitative arrangement of the entity's management, in terms of allocating the business resources, performance evaluation, and formulating prospective plans. Businesses alike hold this as an annual undertaking, putting into account the company's past year's budget and subsequently previewing projections for the next couple of years (however often occurring short-term, in about a year or less.) Budgets provide control over the instantaneous environment, help to master the financial aspects of the job and department, while at the same time administering solutions to problems before they occur. They focus on the importance of assessing alternative actions before decisions are actually implemented. Budgeting serves as a means of systematically planning and control. This will require a realistic financial documentation of the company's goals and performance objectives. Upon formulation, the analysis provides adequate development throughout the fiscal year. Consequently, monthly performance reports compare budgeted results against actual stats. The management then examine these and set out to take necessary corrective actions against significant...
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...Budgeting is a process of planning, setting goals and defining the objectives of the management that are needed for a given period of time. It is the tool that provides specific direction and achievements for the company. It also controls the business setting, as well as it helps the management to study the financial aspects of the business and challenges of each department, and learn how to solve these problems. Budgeting also focuses on the essential points in evaluating the alternative actions before coming up with final decisions. Similarly, this is also the financial plan to control the future operations and outcome of the business. The financial aspect involves the budget allocation, the number of hours that must be spend in the operations and production, as well as the number of manpower that is needed in order to operate efficiently an effectively the business. Budgeting works also for the systematic and orderly management program that involves the management of the manpower as well as the effective communication process between the management and the workforce in order to promote motivational factors over the employees. (http://en.wikipedia.org/wiki/Long_range_planning) Furthermore, some budget allocation may be short term, like one year or less; it can be intermediate term for two to three years; or a long term budget that might span for three years or beyond. In the case of short-term budgets, they provide bigger details and information...
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...accordance with your organization procedure and practices: a) The use and care of safety devices It involves with a fixed barrier or guards that prevents physical contact with moving parts. It will prevent any part of your body touching the moving parts which can be a hazard. All machinery and machine guards shall be inspected by the equipment operator to determine that it is safe condition prior to each use for example defective guards. b) Reporting procedure for workplace safety and health issues Firstly they have to identify for examples unsafe equipment, unsafe condition/environment, injuries, near misses or even illnesses. Report to the immediate supervisor on site. The supervisor will write a report and the management will provides feedbacks on the issues and addressed it quickly. Before that the supervisor and the workers will act on the issues on hand immediately. c) The identification and reporting of potential hazards and resolving risk associated with work The 3 steps that are being used are hazard identification, risk assessment and risk control. Workers that observed and identify the potential hazards will report to the supervisor or manager seen in that area. Supervisor or manager will write a report and sent it to the safety department. All hazards reported are reviewed at the end of the month. Monthly hazard inspections are conducted every month using a hazard checklist. Job safety checks to see potential hazards while...
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...of the entity's management, in terms of allocating the business resources, performance evaluation, and formulating prospective plans. Businesses alike hold this as an annual undertaking, putting into account the company's past year's budget and subsequently previewing projections for the next couple of years (however often occurring short-term, in about a year or less.) Budgets provide control over the instantaneous environment, help to master the financial aspects of the job and department, while at the same time administering solutions to problems before they occur. They focus on the importance of assessing alternative actions before decisions are actually implemented. Budgeting serves as a means of systematically planning and control. This will require a realistic financial documentation of the company's goals and performance objectives. Upon formulation, the analysis provides adequate development throughout the fiscal year. Consequently, monthly performance reports compare budgeted results against actual stats. The management then examine these and set out to take necessary corrective actions against significant variances. This is known in the accounting world as budgetary control. Also, allowing effective budgeting conformities thus inadvertently enable managers to better perform their major management functions. In other words, it(budgeting) is a competent technique that concludes in productive management. A good basis of the fundamentals of management is needed to reflect...
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...“Budgeting is a key component in management short and long term planning” I agreed that budgeting is important to management short and long term planning. Budgeting is important to management as it helps people on making decision whether they have enough money to progress through to the next step of planning, expanding the business and earning profit for themselves. If budgeting or planning doesn’t exist in management, there is a risk on business spending more money than earning it, in other words, not spending enough money to expand the business and stay on competitive level. Budgeting is also helpful in planning the years ahead. For example if a company are planning to purchase a new product, budgeting may help to decide whether how much money are needed to spend. All these planning takes time and money, so budgeting is a key component here by acting as a timetable on when the money is needed, how much amount is needed and what results to expect as the money and effort have been use on whether the company is making any profit. Budgeting is an important planning tool, as other planning strategy such as marketing expenditures or salary levels failure to compromise it will affect the company planning term. So every decision must be well plan and decide to meet the objectives in order for the company to be successful. A budget also helps to keep track on the business whether the company is earning profit and making any necessary changes if needed. If a new business doesn’t...
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...I agree to a certain extent that budgeting is a key component in management short and long term planning. Budgeting is a key process for planning, monitoring and controlling the finances of a firm. It focuses in points evaluating the alternative choices before making a decision. Budgeting serves many different purposes such as monitoring the revenue and expenditure over a certain time frame, or it can also anticipate the income and expenses over the financial year. Budgets help you determine where you can allocate your money and how you will use it. It should, ideally, allow for the goals of people to meet the goals of the company. Any items that are purchased and paid for within the year would be short-term budgeting for example; a car rental business would need to include the cost of fuel and maintenance of the vehicles for a year in the annual budget. Items that are paid over a number of years are long-term budgets for example; a business that budgets the costs of replacing its vehicles every ten years. Sub-budgets are usually prepared by most entities. Manufacturing entities, for example, might prepare sales, production and administration budgets which would be combined into an overall budget. This overall budget, which is also known as a master budget, is when the sub-budgets are combined into one which is a budgeted income statement, budgeted statement of financial position and a budgeted statement of cash flows. Master budgets are closely looked at to see whether a bigger...
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...Introduction Budgeting is in its simplest term, an estimation of future outflow/ inflow of money as well as predicted income within a fixed period of time. Budgeting is to many companies, a method of allocating resources. It also serves to evaluate its performance of the organization. Thus I agree to a large extent that budgeting is a key component in management in short and long term planning. Short-term budgeting (Advantages) The pros of short-term budgeting is, firstly, it can help to improve the co-relations between employee as they will be communicating with each other closely to meet the budget plans set by the company. Secondly, budgeting can helps the company to improve in allocating the resources as request are justified. Company will base on the budget plan to acquire the resources that is needed for the company to produce its products and maintain the quality of the production. Thirdly, it will provide companies with a record of its organizational activities throughout the month/year. By having these records, it allows companies to compare its standard plan with the actual result produce within the month/year. Thus organization can further improve its budgeting plans in future and solve the problems face during the past month/year. Disadvantages However, there are also disadvantages of having a short-term budgeting. Firstly, it will faces strong competition to allocate resources from the external forces such as other companies in the same line of production...
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...Budgeting as a Key Component in Short and Long- Term Planning Management Budgeting is a process of planning, setting goals and defining the objectives of themanagement that are needed for a given period of time. It is the tool that provides specific direction and achievements for the company. It also controls the business setting, as well as it helps the management to study the financial aspects of the business and challenges of each department, and learn how to solve these problems. Budgeting also focuses on the essential points in evaluating the alternative actions before coming up with final decisions. Similarly, this is also the financial plan to control the future operations and outcome of the business. The financial aspect involves the budget allocation, the number of hours that must be spend in the operations and production, as well as the number of manpower that is needed in order to operate efficiently an effectively the business. Budgeting works also for the systematic and orderly management program that involves the management of the manpower as well as the effective communication process between the management and the workforce in order to promote motivational factors over the employees. (http://en.wikipedia.org/wiki/Long_range_planning) Furthermore, some budget allocation may be short term, like one year or less; it can be intermediate term for two to three years; or a long term budget that might span for three years or beyond. In the case of short-term budgets...
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...Budgeting as a Key Component in Short and Long- Term Planning Management Budgeting is a process of planning, setting goals and defining the objectives of the management that are needed for a given period of time. It is the tool that provides specific direction and achievements for the company. It also controls the business setting, as well as it helps the management to study the financial aspects of the business and challenges of each department, and learn how to solve these problems. Budgeting also focuses on the essential points in evaluating the alternative actions before coming up with final decisions. Similarly, this is also the financial plan to control the future operations and outcome of the business. The financial aspect involves the budget allocation, the number of hours that must be spend in the operations and production, as well as the number of manpower that is needed in order to operate efficiently an effectively the business. Budgeting works also for the systematic and orderly management program that involves the management of the manpower as well as the effective communication process between the management and the workforce in order to promote motivational factors over the employees. (http://en.wikipedia.org/wiki/Long_range_planning) Furthermore, some budget allocation may be short term, like one year or less; it can be intermediate term for two to three years; or a long term budget that might span for three years or beyond...
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...Budgeting Is a Key Component in Management Short and Long Term Planning I agree the statement "Budgeting is a key component in management short and long term planning." Budgeting could let us have a well plan list of our upcoming event’s expenses as well as our current and financial plan. By planning our budget we could also have a better view of our current and future’s expenses cum revenues. Having a budgeting plan company would also be able to identify out if there is any problem occur with the company’s financial states. Limits, expenses limits it’s a definitely need in companies which budgeting helps to show our current assets, cash and how much amount does the company may afford to expend or do investment in their business. Having this budget planning companies will be able to keep track and stay within their calculated budget’s limits. Companies wouldn’t overspend with the list of guidelines; we could use budgets as a guide. In business, budgets help you determine how much money you have and how you will use it, and help you decide whether you have enough money to achieve your financial goals. As part of a business plan, a budget can help convince a loan officer that you know your business and have anticipated its needs. Budgeting may possibly be an advantage for a company to have, as it can help a company on financial and its strategy. In order to make the most effective use of your budgets, you will want to establish reporting devices. These will include...
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...“Budgeting is a key component in management short and long term planning” I agreed that budgeting is important to management short and long term planning. Budgeting is important to management as it helps people on making decision whether they have enough money to progress through to the next step of planning, expanding the business and earning profit for themselves. If budgeting or planning doesn’t exist in management, there is a risk on business spending more money than earning it, in other words, not spending enough money to expand the business and stay on competitive level. Budgeting is also helpful in planning the years ahead. For example if a company are planning to purchase a new product, budgeting may help to decide whether how much money are needed to spend. All these planning takes time and money, so budgeting is a key component here by acting as a timetable on when the money is needed, how much amount is needed and what results to expect as the money and effort have been use on whether the company is making any profit. Budgeting is an important planning tool, as other planning strategy such as marketing expenditures or salary levels failure to compromise it will affect the company planning term. So every decision must be well plan and decide to meet the objectives in order for the company to be successful. A budget also helps to keep track on the business whether the company is earning profit and making any necessary changes if needed. If a new business doesn’t...
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...The End | | | | Cash Budget I agree with the statement that “budgeting is a key component in management short and long term planning”. Budgeting is a process of defining goals and planning actions in a period of time (Sullivan and Steven, 2003). Generally, Budgeting helps to facilitate the planning and provide information for managers to determine the future strategies. More specifically it contributes to the company’s performance in the following aspects in management short and long term planning. First, proper budgeting helps allocate the resources of the company. A proper budgeting usually covers the financial and time costs during a particular period of future time. As a company might involves multiple tasks in the same time, it is quite important for the company to allocate its resources (time, money and staff) to maximize the efficiency. For example, an IT company might invest a lot of money developing new products. But at the same time, it also has to manufacturing and marketing its existing products. If there is no budgeting or inappropriate budgeting, the company might run short of resources in one aspect and suffer losses. To avoid such problem, budgeting helps calculate the cost of every development, manufacture, or marketing project, forecast their contribution to the overall performance of the company, and finally allocate the limited resources to those projects. Secondly, budgeting helps managers make...
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...“Budgeting is a key component in management short and long term planning” Yes. Budgeting is a key component in management short and long term planning. At its most basic level, a budget is a plan for owners and managers to achieve their goals for the company. (E, 1999-2005) In the accounting industry, a budget is a financial plan and a list of all planned expenses and revenues. It is all about planning, evaluation, coordinating and communication. By preparing monthly budgets for the company, owners and managers are able to easily identify specifically the variances or the vice versa. Once its identified, managers and owners can then take necessary corrective actions to ensure that future results will be able to conform to the budget. Also, they can also forecast and identify the periods of expected fluctuations of either cash shortages or excess, as well as, profits or loss and plan for necessary actions. Preparing and planning a long term budget (yearly), can help to direct the company to a different direction. In a master budget, owners or managers can make use on one of its functional budgets to make a difference in the overall profit and loss for that year. For example, Apple. The company clearly steered their attention and focus on their marketing budget, setting an increasing advertising budget yearly which was a strategy to increase the sales. Translation: Apple spent less than 1% of sales last year on advertising. And its sales growth has been far outpacing...
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