Budgets are the primary instrument managers
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Budgets are the primary instrument managers use for planning and maintaining an organisation's
In relation to the above, critically appriase four (4) guidelines with examples on preparing a good buget for a business during the COVID-19 pandemic.
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- It is important for institutions to budget and to further have feedback by receiving regular budgetary control reports in order to facilitate budget centres take control action. The report may or may not be detailed but ideally should contain sufficient information in order to motivate individual managers. Reports to top managers can be exceptional in nature. It is also essential for companies to conduct forecasting as they conduct their business. Required: Define the following terms: iii. Feed -back loop. Explain this as it applies in the Control Circle. iv. Identify and explain in detail features of feed- back which add value to the management of an institution.The third task is a continuation of the study material which will teach the management trainees to evaluate how planning tools for accounting help to solve problems and support organisations with sustainable success (D3). This will include an explanation of the advantages and disadvantages of the budgetary tools by analysing of the use of different planning tools and their application for preparing and forecasting budgets (P4, M3). The study material will go onto look at how to respond to financial problems, and how management accounting can lead organisation to sustainable success (M4). This will include a comparison of how organisations are adapting management systems to respond to financial problemsIt is important for institutions to budget and to further have feedback by receiving regular budgetary control reports in order to facilitate budget centres take control action. The report may or may not be detailed but ideally should contain sufficient information in order to motivate individual managers. Reports to top managers can be exceptional in nature. It is also essential for companies to conduct forecasting as they conduct their business. Required: 1. Explain clearly the differences between forecasting and budgeting. Define the following terms: i. Single-loop feedback. ii. Double-loop Feedback.
- The chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. As the management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines for senior managers. In preparing your report you should consider the behavioural consequences of using budgets in planning and control.the chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. as teh management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines for senior managers. In preparing your report you should consider the behavioural consequences of using budgets in planning and controlSelect each of the terms with the best description of its purpose. Definitions Terms 1. Planning future business actions and expressing them as formal plans. 2. A comprehensive business plan that includes operating, investing, and financing budgets. 3. Employees who will be evaluated by a budget help prepare it. 4. Shows expected cash inflows and outflows and helps determine financing needs. 5. An approach that requires all expenses to be justified for each new budget. 6. A formal statement of future plans, usually expressed in monetary terms. 7. Approach in which top management passes down a budget without employee input. 8. Management's use of budgets to see that planned objectives are met.
- : The chief executive of your company has asked you to recommend an approach to be used in preparing budgets and to draft guidelines for senior managers on managing performance using budgets. As the management accountant prepare a report to the chief executive describing your selected approach and your recommended guidelines For senior managers. In preparing your report you should consider the behavioral consequences of using budgets in planning and control(B) For the purpose of effective budgetary control, it is imperative on the part of each entity to have definite ‘plan of organization’. This plan of organization is embodied in the organization chart. Assuming that you started your own business, make an organization chart according to your business activities and explain with an example how organization chart guide you to prepare different types of budgets explainThe major objectives of any budget system are to Define responsibility centers, provide a framework for performance evaluation and promote communication and coordination among organizations segments Define responsibility centers, facilitate the fixing of blame for missed budget predictions, and ensure goals congruence between superiors and subordinates Foster the planning of operations, provide a framework for performance evaluation, and promote communication and coordination among organization segments
- q: Budgeting: The various activities within a company should be coordinated bythe preparation of plans and actions for future periods. These detailed plans areusually referred to as budgets. Discuss the multiple functions of budgets. Q2: Agency theory: Briefly discuss the agency theory and highlight real lifechallenges and issuesManagement accountants must try to implement systems that are acceptable to budget stakeholders to produce positive effects. Now, as a management accountant, choose three (3) negative attitudes, explain them and write yourr ecommendations on how you will address these negative attitudes from a management’s perspective. It couldi ether be a policy that the management will implement or an action that will be undertaken by management to counteract the negative attitude.(3) Explain the ethical considerations as it relates to using budgets as a basis for rewarding managers? (4)Explain three specific benefits that a system of budgetary planning and control may bring to an organization.
