Is The Budget Has Outlived Its Usefulness On The 21St...

Is The Budget Has Outlived Its Usefulness On The 21st...
Introduction The purpose of this paper is to examine the question of whether the budget has outlived
its usefulness in the 21st century. Over the past 20 years, people within the academic and business
worlds have argued that it is time for companies to move away from traditional budgets to a concept
known as beyond budgeting (Sandalgaard & Nikolaj Bukh, 2014: 409–410). Researchers and
business practitioners have argued that the traditional budget process requires too much time, with
some estimating that traditional budgeting requires 20% of management time throughout the year to
complete (Neely, Bourne & Adams, 2003: 22). Others have also argued that traditional budgeting is
flawed because it provides an incentive for managers to essentially lie about how much money they
project to spend or the revenue and profits they project to achieve in order to receive more monies or
to demonstrate reduced spending to corporate leaders (Hope & Fraser, 2003: 108). However, some
researchers and practitioners have explained that the entire idea that the traditional budgeting
process is going to end in favor of the beyond budgeting concept is incorrect given that most
organizations continue to prepare and use traditional budgets (Jackson & Starovic, 2004: 2). In the
discussion and examination that follows, a brief definition and description of the concept of beyond
budgeting is provided. Then, the criticism of the traditional budgeting process by the proponents of
the beyond
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The Decision Of The Budgeting Process
The budgeting process is an approach that needs to be carefully selected, managed, applied and
controlled. As the CEO of the company my mission is ensure the right business practices are applied
to generate better outcomes to our organization. Our current budgeting process is a popular approach
used at many local, sate, or national governmental agencies, and nonprofit organization, which
consist on spending at the end of the budget cycle the amount that was not used. Managers tend to
do it, as they often feel that if they don 't spend such amount during that specific period, next year
their budget will be reduced by the same dollar amount. This obviously could make managers to
spend money unnecessary and manage resources in ways that can harm the company. The purpose
of this memo is explain budget managers the reason why is not convenient to utilize the 'use it or
lose it' approach as budgeting process due to its harmful effects and at the same time it will provide
an alternative solution for our current system. According to Horngren, C. T (2014), "Budgeting can
cover such diverse issues as how much time to spend inspecting a product and how much money the
company will allot to research and development in the coming year" (p. 271). It is more than clear
that all organizations needs from budgets to manage their resources in a way that can produce as
much as possible, however is important to keep a good quality and reward our personnel while
achieving this goal. There are

The Performance Based Budgeting And The Approach Of...
Hoover Performance Budgeting
Performance based budgeting refers to the approach of allocating funds that link measured results
with policy decisions. It focuses on results and outcomes of programs rather than on the cost of
inputs. It facilitates greater and more scientific accountability for outcomes. Fund allocation is
prioritised based on a program's ability to achieve goals.
Legislative Analyst's Office [1] defines performance–based budget as:
"... the allocation of resource based on an expectation of performance levels, where performance is
measured in specific, meaningful terms. It differs from the traditional approach to budgeting in that
it focusses on outcomes rather than on inputs or processes."[1]
For instance, providing ... Show more content on Helpwriting.net ...
The Hoover Commission made the following observations for performance budgeting while
recommending overhaul of the nation's budget process:
Under performance budgeting, government departments and agencies would prepare budgets
according to their "major functions, activities and projects" [8] focusing on the impact of the activity
or service instead of "things to be acquired" [8]
These budget reforms aimed to provide holistic information about programs and activities based on
measurement of ultimate impact of outcomes through parameters that measured effectiveness and
efficiency of operations. Thus the question of optimal utilization of resources and whether the
government is allocating them accordingly was to be addressed by this reform.
The Commission recommendations on performance budgeting requirements (HPB) were
implemented through two legislations: The National Security Act Amendments (1949) and the
Budgeting and Accounting Procedures Act (BAPA), 1950 that prescribed a less prescriptive
definition of performance budgeting that instituted country wide adoption of this budget technique.
Elements of Hover Performance Budgeting (HPB)
Performance measurement based processes require certain elements as prerequisite in each of the
four stages viz proposal; negotiation and approval; execution and reporting. To be meaningful,
performance measurement in budgeting must be reflected in each stage

The City Of Haltom 's Annual Budget
have evaluated the City of Haltom's Annual Budget for Fiscal 2016 budget using the Government
Finance Officers Association (GFOA) recommended budget practices. The Annual Budget was
reviewed under four major categories which are as follows: policy document, financial plan,
operations guide, and communication device. Using the GFOA awards scale my rating of the budget
for each individual category and the budget as a whole is a 4 (outstanding). The City of Haltom has
received the GFOA Certificate of Achievement for fiscal years 1987–2014. The budgets prepared
for submission have been recognized with the GFOA Distinguished Budget award annually since
1989 with exception of one year. The City continues to participate successfully in these two
programs and follow mandatory and non–mandatory guidelines of the GFOA. The City of Haltom
Budget is very transparent and provides a great deal of information to its citizens whom the city
views at the top of the organizational chart for the city. The City's budget for FY2016 appears to
continue to conform to the GFOA program requirements and upon submission of their budget I have
no doubt their budget for FY 2016 will receive a GFOA Distinguished Budget award.
Introduction
The budget process is a powerful planning tool for government to make important resource
decisions. According the Carney and Schoenfeld's article on How to read a Budget, an operating
budget is a reflection of government's financial plans. When a budget is

Analysis Of Budgets Lie At The Core Of Every Business...
Introduction Budgets lie at the core of every business practice. The tools are the major evaluators of
managerial effectiveness and overall organizational performance. Businesses can achieve effective
control and planning through the application of the right budgeting approaches in financial and
accounting activities. Nonetheless, these benefits can only be realized if the managers of a company
use the most effective models that take into account all relevant factors, which influence a firm's
budget. An inefficient method automatically leads to attainment of poor results. In this light,
practitioners in the financial and accounting sectors evaluate different budgeting techniques in terms
of efficiency, flexibility, accurate results, and ease of use. One of the approaches that attract
immense criticism in respect to these considerations is the traditional budgeting approach. It is,
therefore, essential to look into the reasons as to why the model has been criticized as a rigid method
that should be eliminated (Zeller & Metzger 2013). Weaknesses of Traditional Budgeting Traditional
budgeting model is not a new concept in business practice. Its application goes beyond the
contemporary practices that have seen the development of new techniques. The model dates back to
the onset of 1920s when the managers of the industrial revolution realized the need to control costs
and the cash flows of a firm. Horvath and Sauter (2004) define the model as a quantitative
expression of a

Essay Case Study
April 8, 2013
Case: Chester & Wayne
Budgeting in a business is important for so many reasons. Business leaders often deal with large
amounts of money, and some employees or outsiders might see the organization's revenue as nearly
limitless. Regardless of the business cash on hand, though, careful budgeting plays a critical role in
any organization's success. Chester & Wayne is a large regional food distribution company and
the CEO of the company has asked for some assistance in preparing a budget for their cash flow.
With the information provided by CEO, Mr. Wayne, the budget will be carefully planned. "By
having a firm plan in place you can easily see, over the year, in which months you are making a
profit and you can ... Show more content on Helpwriting.net ...
Wayne thinks that the gross margin may shrink to 27.5 percent because of higher purchase prices.
He is concerned about what impact this will have on borrowings. Because share prices move
frequently, and company is exposed to the risk that the shares might fall in value. If margins
decrease it a chance that they could possible impact them receiving loans. Being that there was an
increase in sales there could mean a decline in customer or bringing in more customers. Since there
is a decline in the margins and an increase in sales Mr. Wayne is worried about stocks which is
normal. "Stock out" has no dollar value, it usually represents inventory that is owned by the
company but physically not in their warehouse. He acknowledge the fact that there will be stock out
and in this case this could help or harm the company. "Researchers found that customers
experienced less negative emotion when the online retailer acknowledged the stock–out. Compared
to simply acknowledging stock–outs or giving a backorder option, financial compensation such as
discounts on next purchase was more effective in mitigating the negative impact of stock–outs on
patronage intention (Marineau, 2011).
For a supplier or retailer, stock–outs

Essay on HCC Industries
Context HCC Industries is a small publicly owned company headquartered in California that has
four divisions across the United States. Three divisions manufacture and sell hermetically sealed
electronic connection devices of various types, while one, Hermetite, produces microelectronic
packages. HCC's divisions are very self–
‐contained and independent. A general manager runs each
division and is responsible for nearly all its functions. Additionally, a controller is employed to do
the reporting for each division. ... Show more content on Helpwriting.net ...
This leads to demoralizing situations for their divisions. With attainable targets, they have something
to aim for. These drastic goals could cause the managers and their teams to give up, knowing that
they will fail to meet expectations. Another issue with the budgets is that they supposed to be fixed.
As a result, they don't account for unforeseen events. Some of the criteria are under the
division's control such as delinquency and quality. However, criteria like shipping, bookings profit
before tax are highly exposed to macro–
‐economic forces outside of HCC's control. The threat of
termination could create situations where managers make poor decisions that will hurt the company
in an effort to save their position.
In the case of Hermetite, its unpredictable nature makes it particular challenging to budget for.
Because Hermetite's results could vary significantly, a fixed budget approach is especially
inappropriate for evaluating the work of the Hermetite division.
Bonus

Critical Analysis Of The Abolishment Of Budgeting
Critical Analysis of the Abolishment of Budgeting
Budgeting is a main instrument of management control for most organizations' systems. Recently it
is a controversial phenomenon, the disappointment with budgeting is occurring. This is because
some people find that budgeting processes is time consuming and often lead to dysfunctional
behavior. Additionally, they make organization fail to be flexible in such an uncertain financial
environment. Many people think traditional budgeting systems should be abolished, but others wish
to improve them. Hope and Fraser (2003b) provide a few European companies that have abolished
traditional budgeting systems successfully. On the other hand, Eckholm and Wallin (2000) observed
approximately 61% of firms will improve the budgeting processes and continue to use them as
control purpose. This paper argues that whether budgeting should be abolished or not mainly focus
on three aspects, "fixed performance contracts", time consuming and the changes of budgeting in
real life. Evidence is presented that as a control instrument although budgeting has some
shortcomings, it should not be abolished. Instead, those shortcomings could be addressed by some
improvement measures.
Fixed performance contracts
One criticism of Hope and Fraser is that budgets use a mechanism called fixed performance
contracts. They contend that when budget related elements have changed during budgeting period, a
fixed goal may stand a poor performance evaluation criterion.

Critical Analysis Of The Abolition Of Budgeting
Critical Analysis of the Abolition of Budgeting
Budgeting is a main instrument of management control for most organizations' systems. Recently it
is a controversial phenomenon, the disappointment with budgeting is occurring. This is because
some people find that budgeting processes are time consuming and often lead to dysfunctional
behavior. Additionally, they make organization fail to be flexible in such an uncertain financial
environment. Many people think traditional budgeting systems should be abolished, but others wish
to improve them. Hope and Fraser (2003b) provide a few examples of European companies that
have abolished traditional budgeting systems successfully. On the other hand, Eckholm and Wallin
(2000) observe approximately ... Show more content on Helpwriting.net ...
Thus, under the pressure to improve performance, subordinates may force performance through
engage some short–term actions, which may result in earning manipulation, breakdown in corporate
ethics or outright fraud. In a company that applies traditional budgeting, teams are fighting with
each other for customers and resources, which leads to discourage of information sharing. Hope and
Fraser (2003b) maintain that budgeting impedes information sharing and slow the responsibility of
market information. In addition, without budget targets, subordinates would report or make more
effort on some abnormal market information they collect instead of simply hide them. The reporting
of that abnormal information may help the company adjust their business strategy, and avoid
shortcomings (Hope and Fraser, 2003b).
Conversely, Libby and Lindsay (2010) suggest that in their survey sample, in terms of the efforts put
on achieving budgets targets, there are 52% and 71% of respondents in Canadian and US
respectively, which indicate that the emphasis is high. In respects of the relevance of the use of fixed
performance contracts, there are only 12% of respondents in Canadian and 17% respondents in US
agree that financial performance is strictly compared to the predetermined target and no commission
for changes during the competitive period. In other words, the fixed performance contracts are not
as highly relevant as what Hope and Fraser suggested. In terms of information sharing,

Case Study : ' The Quaint Grizzly Bear Lodge '
The quaint Grizzly Bear Lodge just outside of Yellow National Park has been operating efficiently
and effectively for years with a focus on service excellence and employee empowerment. The
owners, Diane and Rudy Conrad have an opportunity to expand their business by purchasing the
property next door. This expansion would more than double their current size as well as expenses
and staffing. While this is a potential exciting time in their business, careful thought will have to be
used in the planning, control and financial management of the expansion. The Conrad's have been
positively using clan control in the management of their lodge. Clan control is based on the idea that
employees may share the values, expectations, and goals of the organization and act in accordance
with them. (Bateman/Snell 529). Whether intentional or not, this type of organizational control
provides strong empowerment, engagement and loyalty among their employees. They feel as though
they provide high levels of customer satisfaction to their guests with this type of management.
Losing this personal touch is a concern as they consider expansion. While the Conrad's will not
likely engage in bureaucratic control of their business, they will benefit from the practices that come
from feedforward control, concurrent control and feedback control as they evaluate their new
venture. As part of their planning process, a customer service survey of their previous guests would
provide them with the

Palm Desert Case Study
Experience 2015 – Present Palm Desert Area Regional Chamber of Palm Desert, CA President/CEO
Maintain the metrics as established for the 5–Star US Accredited, Award Winning Chamber.
Work with Board of Directors to establish, implement and maintain the corporate mission and vision
and assist with setting the strategic direction of the organization.
Extensive experience establishing and implementing annual program of work/business plan that is
consistent with achieving strategic goals set with the Board of Directors.
Oversee and manage fiscal resources of the organization including preparation of the annual budget,
and ensuring that all financial records are audited in compliance with established laws. ... Show
more content on Helpwriting.net ...
Participate in both chamber and community activities to promote and enhance the image and
relationship for the chamber with all groups and parties within the city and state. This has lead to
stronger more effective relationships with the city as evidenced by the successful negotiations of
securing $35,000 for an annual event and an additional $35,000 for a new event thus taking a risk
and having confidence that the only 5–Star Chamber in the Coachella Valley would be successful.
Coordinate the activities of the chamber staff including recruiting, educating, training, supervising
and regularly assessing performance of staff.
Recruit, orient, and direct the activities of volunteers including committees, workgroups and task
forces.
Recruit new members and retain existing members by directing and participating with appropriate
personnel to ensure adequate membership services.
Selected and participated at the US Chamber Institution of Organizational Management
accreditation at the University of Tuscon site as a Class

Can Go Case Study
2. Issue: Lack of budgeting and financial considerations.
The team at Can Go never discusses the cost of projects and systems. The most word they use is
expensive. They all agree that the ASRS system is going to be expensive and that a market research
will be expensive but they have no specific dollar amount as to what expensive means. The costs
need to be put into measurable units. The project team never runs the numbers by the finance
department. The team plans to purchase two ASRS systems without checking with the Finance
department.
2. Recommendations: Every budget and project needs a budget. The budget will help with planning
and ensure that the team is keeping expenditures under control and also will give the team a target of
what needs to be accomplished. The first question the team should ask before undertaking a project
is "how much is this going to cost and what the value is to the company? The company needs to
have a cost benefit analysis to find out if the cost of the project is justified by the value and benefit it
brings into the organization. The projects are supposed to be approved by the finance department
before they are undertaken to ensure that there are funds to fund the project. ... Show more content
on Helpwriting.net ...
Issue: There is lack of leadership.
There is lack of leadership at Can Go. Elizabeth needs to set the tone of the company and be
involved in decision making and she should be actively involved in the meetings. The management
doesn't delegate assignments. Andrew volunteers to find out about the Japan market instead of the
assignment being assigned to the person best able to handle this. There is no role definition of roles
and accountability. People just volunteer to do assignments and there is no formal assignment of
duties and

The Business 's Planning And Control Policy
BUDGETING
In the most recent years budgets are considered to be one of the key factors about the business's
planning and control policy (Thomas, 1983, p. 133). Financial budgets show the business's strategy
concerning the following year compiled by financial statements, plus they are supposed to be the
policy used in order to evaluate the managerial performance and be the principle of the management
system (ibid). Budgets are considered to be attached to the concept of control.
It is really essential that firms create a written project that formulates which will be the objectives of
the company, what kind of strategies should be followed and what outcomes are more likely, also
known as performance targets (Merchant & Van der Stede, 2012, p.306). According to Drury (2004,
p. 593) budgeting is affected by the fulfillment of the deep–rooted plan for the following year and,
due to the shorter preparation boundary, budgets are supposed to be accurate and particularized.
Budgets are a straightforward evidence of what should be anticipated to be accomplished throughout
the duration of the budget period.
According to Hansen and Mowen (2003, p.992) "Budgetary slack is the process of padding the
budget by overestimating costs and underestimating revenues". Managers and workers in a firm
need to be encouraged to participate in the budget. There are two main ways in which the
participation in the budget takes place: the first one is the "top–down" approach, in which the
managers give

An Exploration Of Budgeting And Forecasting
Summary
This paper will be an exploration of budgeting and forecasting and how they are determined and
why they need to be re–evaluated at the organization I work for. Furthermore, the hope is to uncover
some of the underlining causes that are the drivers that trigger the re–evaluations in our organization
as well as discover ways to mitigate those factors.
Background
Like any other business we need to lower our costs, we apparently have difficulties creating a
realistic budget, at least initially, and also have great difficulties with accurately forecasting. Are
budgeting problems for new products could be due to the fact that prospective costs on new parts
take a while to get properly entered into the system, combine that fact with a 12 month projection,
times the number of parts missing cost information from our budget document and there will be
quite a difference in actual costs at the end. By using a bill of materials for as a guide for new
products, items with over $5 per item actually cost difference can be off by as much as 80% overall.
We are not any better at forecasting or predicting are sales revenue. It is not as conservative as it
should be, we may be taking only the optimistic view or we do not have a good understanding of our
place it the market. I'm not sure what's driving it. However, I do not know that we buy inventory,
ramp up staffing, add plants, and equipment solely based on these projections, so we need to do this
much better. Also, by using a bill of

Budget Essay
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 ... Show more content on Helpwriting.net ...
Budget preparation is the principal mechanism for achieving items (1) and (2); item (3) typically
features as an element of budget preparation only in industrial countries, while item (4) is essentially
an issue in budget execution and cash management (see Sections 4 and 5). Moreover, no system of
budget execution or cash planning (the subjects of Sections 4 and 5) can do more than mitigate the
problems caused by poor quality or unrealistic budget preparation.
To understand the budget preparation process in a given country, it is important to: * assess the basic
soundness by judging the budget preparation system against certain internationally accepted
standards or "budget principles"; * know where to find the rules governing the budget preparation
process; and * from those rules, identify who has the responsibility for what elements of the budget
preparation process. * Recognizing the usefulness of budget principles
Based on the objective macroeconomic assessment of available revenues and financing, ideally, the
expenditure budget should aim to be comprehensive, transparent, realistic, policy–oriented, and
allow for clear accountability in budget execution. These concepts form a standard by which the
soundness of budget systems can be judged:
Box 1. Assessing the Soundness of the Budget
The soundness of budget systems can be judged by the following:
Comprehensiveness
* Is the

Cost Centre Of Sales Branches
1. Executive Summary 3
1.1 Purpose of Report 3
2. Introduction 4
2.1 Background 4
3. Findings 5
4. Discussion 5
4.1 Thoja Organisational Structure 5
4.2 Benefits of decentralisation 5
4.3 Limitations of decentralisation 5
5. Cost Centre 6
6. Thoja 's Old Budgeting System 7
7. Thoja 's New Budgeting System 8
8. Conclusion and Recommendations 8
10. References 9
1. Executive Summary
1.1 Purpose of Report
The purpose of this report is to distinguish the type of cost centre of sales branches and to also
compare the old and new budgeting systems at Thoja.
Thoja Company is a decentralised company in which its organisational structure is functionally
based. The company's sales branches are recognised as discretionary cost centres. The company's
president, Harry Hansen has decided to implement a new budgeting system for the sales branches in
order to prevent budget slacks. The reason for implementing the new budgeting system is to attempt
to lower selling expenses and sales volume together.
The new budgeted system at Thoja comprises of fixed and variable costs in order to associate selling
expenses and sales volumes together. With the implementation of the new budgeting system, the
company overcame the partiality and biasing forecasts, however the new system also had some
potential disadvantages as tight budgets may encourage managers to cut costs and as a result, this
will be damaging the company's long–term benefits. Furthermore, the sales branches at

A Project Manager For The Success Of Acer Inc.
I Worked with Nokia Solutions Networks as a Project Manager for many years. Acer is one of the
largest telecommunication companies in the world. Over the years, the company has emerged from a
small local business to become successfully global. Its visionary founder took into account its
difficult path as the best way in which the company could prosper towards the acquisition of the
global market. As Barrow (2011) contends, one of the factors that has promoted the success of Acer
Inc. is the proper financial systems and budget employed in the management of its finances. For
example, in 1976, it was founded with a capital of US$25ooo, but has grown steadily to become a
multibillionaire company, together with its other close competitors (Barrow, 2011).
Running a company often requires carefully planning and review of finances. Various studies reveal
that most companies use other forms of accounting mainly for measuring, identifying, analyzing,
and reporting their financial information. In spite of making tremendous success, proper financial
budget planning is still important for the development and success of Acer Company. In this way,
accounting tools may include financial statements, forecasts, and other may be employed. Proper
budget planning is important to the business in the following ways. Firstly, through the budget,
detailed information on the analysis of how the company anticipates spending its finances, in future
times can be revealed. Proper budget planning limits

Evaluating The Current Incremental Budgeting System
1.1 Executive Summary This report reviews the company's current incremental budgeting system,
explores the beyond budgeting approach and looks at the alternative flexible methods available. In
Summary, although the managing director could continue to use the incremental system, it is
recommended that an 'Activity Based Costing' strategy is adopted. Although the current incremental
method is simple and easy to understand, it has many drawbacks making it unsuitable for today's
economic environment. 1.2 Objectives Taking into consideration the current economic climate, to
investigate how beneficial a beyond budgeting approach would be, in regards to flexibility and
financial control of the business. To also explore the possibility of adopting an Activity Based
Costing system and the benefits it would bring to the company. Lastly, after reviewing the benefits
and shortcomings of all three methods of budgeting, determine which method is the most suitable
for the managing director. 1.3 Background to budgeting The process of budgeting is one of the most
important management tools available to a business, particularly in today's current economic
climate. It serves three major purposes; coordinating activities and tasks, motivating employees and
allows for forecasting of future developments and events in order to prepare for the future of the
business effectively (Weber, 2005). 2.1 Incremental Budgeting According to M.M Ibrahim and R.A
Proctor (1992), "the incremental

Manage budgets and financial plans Essay
Assessment Task 1
Manage budgets and financial plans
Big Red Bicycle Pty Ltd
Task A
Based on the master budget, there have something wrong and unclear. All the numbers are the same,
evenly quarter two have more sale than other quarter, at least less 30% than quarter two. We can
easy to recognize with a few changes and we can achieve a goal $1.000.000
Option 1: Sales on Q1, Q3 and Q4 less 30% than Q2. That's mean the volume of Q2 going to
increase 30% than other and the commission will increase 30% as well
Option 2: Decrease Cost of Goods Sold and Expense by 20% due to the current economic climate.
By that way we can get more revenue by produce more volume for sale and also ... Show more
content on Helpwriting.net ...
Sales centre A, they had achieved great success over the last year and consistently outsells other
sales centres. In fact, due to the large number of accounts managed by our sales team and larger
staff, Sales centre A is expected to sell as much volume as the other two sales centres put together.
That means, the expense budget for Sales centre A must be more than other, at least twice time then
the other centre. Because, they need a lot of money to pay for their cost, such as Wages, telephone,
office supplies, and commission. That seems not fair for Sale centre A.
Contingency plan template
Contingency Plan
Company name: Big Red Bicycle Pty Ltd
Person developing the plan: Nguyen, Hoang &Sachit Mahat
Name: Nguyen, Hoang &Sachit Mahat Position Manager of Sale Centre A
Risk identified:
Strategies/activities to minimise the risk

By when
By whom
Evaluate total expense and reduce any unnecessary expense: Wages, advertising, staff amenities...
10/01/2014
All store
Deal with supplier to reduce cost of gods sold or change to new supplier
10/01/2014
CEO Michelle Yeo
Find out and fix the problem from accounting department, change new senior accountant
02/01/2014
CEO Michelle Yeo
Prepare to negotiate necessary changes to the budget, cash flow and profit projections
5/01/2014
New senior accountant
Identify areas of the budget that are not achievable, inaccurate or unclear
1/01/2014
New senior accountant
Set a new goal

Budget Planning And Control Management
Budget Planning and Control
According to our text a budget is a formal written statement of management's plans for a specified
future time period, expressed in financial terms (Wiley, 2013). An effective budget gives a company
command and control over financial resources. It helps a company to plan and achieve their strategic
and organizational goals. There are many reasons for a company to prepare and manage a budget,
such as assisting with performance evaluations and identifying possible constraints and limitations.
The budget is an important basis for evaluating performance. It can provide benchmarks against
which to judge success or failure in reaching goals and facilitates timely corrective measures
(Bragg, 2010). Budgeting forms the baseline for a company 's future performance. Managers create
the budget anticipating financial conditions and market expectations for future periods. These
managers calculate revenues and expenses for the period being budgeted. When the period reflected
in the budget arrives, the managers compare actual expenses to the budget numbers and evaluate the
department 's performance (Bragg, 2010).
Another advantage of budgets is that they can be instrumental in identifying constraints and
bottlenecks. The earlier example of the power plant well illustrated this point. Efficient operation of
the power plant was limited by the supply of

Budget Management Analysis : The Budget
Budget Management Analysis The operational budget is a key part of any business or organization.
It is a necessity for both profit and non– profit organizations. The budget is used to allocate
financial, physical and human resources to achieve strategic goals (Best Practices, 2000). The
budget shows how resources will be utilized; it should be linked to the overall strategic plan of the
business or organization. Operational budgets should be aligned with the mission of the company; it
should be aligned with the strategic plan of the company. It should be developed based on revenue
analysis as well as projections for revenue; cash flow also impacts how budgets are developed. The
budget should look at the priorities of the organization; it should benchmark the areas that are a
priority and attempt to effectively utilize resources to meet goals. The operating budget should map
out spending and expenses of the business for a period of time (budgeting period). The operating
budget should focus on cost control and profitability. The involvement should include the owners,
key employees such as the administrator, management team financial team and board members if
there is a governing board.
The operating budget should be practical yet comprehensive. It does not necessarily have to be
balanced; many new companies may not be able to predict or obtain a balanced budget during its
initial phase. The budget must be reviewed routinely to assess the predicted budget versus the actual

Essay about btec business level 3 unit 2 d3
"D3: Evaluate the problems they have identified from unmonitored costs and budgets"
Introduction:
For this task I will be discussing the effects of un–monitoring cost and budgets, and seeing how
business could suffer if they are not look after responsibly. I will show disadvantages of not using
this method properly.
A cost of goods is what it should spend to make products. At the start of each period budget of
production will be ready, using cost of goods and predicted production quantities. At the end of each
period a variance report is prepared to compare the budget costs with the actual costs.
The variance report can tell how well Gardiner Store PLC did at carrying out their budget aims. A
favorable variance shows that actual costs ... Show more content on Helpwriting.net ...
They will have to make people redundant: People redundant can help the business to cut costs, but
there will be not enough staff to work in the supermarket, which some service can't be carried out to
customers. But because firing some staffs can help cut a lot, so they may need to take action.
Other competitors will sell more products: Because the supermarket of Gardiner Stores PLC doesn't
have that much money for input because they need to cut costs to cover the loss of profit on April,
also they make people redundant (explained above), so their competitors will take advantages on
them, so therefore they will sell more product.
Changes in costs
Variances can arise for a large number of reasons:
Errors in estimating
Poor management of resources
Unforeseen price changes
Equipment breakdown
Labor problems
Poor planning
Shortage of raw materials
Budgeting and Variance accounting presume that managers should fix problems, not bury or hide
them. It also presumes that these problems are short–term problems, and can be effectively
controlled in the future. Sometimes there is a change in actual costs that necessitates a change in
standard costs. For instance, a new labor contract could increase total labor costs by a predictable
amount. Standard labor costs should be re–calculated to reflect the new actual

Budget Management Analysis Essay
Budget Management Analysis This research paper is a brief discussion of budget management
analysis. Budgeting is the key to financial management, and is the key to translates an organization
goals or plan into money. Budgeting is a rough estimate of how much a company will need to get
their work done, and provides the basis for evaluating performance, a source of motivation,
coordinating business activities, a tool for management communication and instructions to
employees. Without a budget an organization would be like a driver, driving blinded without
instructions or any sense of direction, that's how important a budget is to every organization and
individual likewise (Clark, 2005). There are several expense results with budget ... Show more
The cash budget is another aspect of budget expectation. The cash budget determines how much
cash an organization have on hand, and how much is needed to meet each expense. The cash budget
will reveal to companies the availability of any type of surplus the company has for short–term
investments.
Capital expenditure budget. This budget is needed when an organization needs to invest in major
projects and equipments, such as purchases of new products, new information technology systems,
in which a management team will conduct a financial evaluation to determine whether the
company's return on investments will be met (Halliman, 2006). Lastly, we have the program budget,
which designate funds to groups that need to achieve specific goals. Program budgets do not allocate
funds to company departments, but to company's activities. Program budgets are very difficult
because there are no specifics to go on, they usually have to go by an estimate, and try to cover all
aspects of possibilities (Halliman, 2006). Since a company's' budget is typically based on knowledge
from their financial history therefore, if a budget variance occurs, it can be because inaccurate
estimates were done, or one or more factors have changed unexpectedly, and the company need to
make some type of adjustments to their budget. Once a company discovered a significant budget
variance, they will need to identify the cause, and address it accordingly. For example,

Evaluation Of A Company 's Plans For A Specified Future...
According to our text a budget is a formal written statement of management's plans for a specified
future time period, expressed in financial terms. An effective budget gives a company command and
control over financial resources. It helps a company to plan and achieve their strategic and
organizational goals. There are many reasons for a company to prepare and manage a budget, such
as assisting with performance evaluations and identifying possible constraints and limitations.
The budget is an important basis for evaluating performance. It can provide benchmarks against
which to judge success or failure in reaching goals and facilitates timely corrective measures.
Budgeting forms the baseline for a company 's future performance. Managers create the budget
anticipating financial conditions and market expectations for future periods. These managers
calculate revenues and expenses for the period being budgeted. When the period reflected in the
budget arrives, the managers compare actual expenses to the budget numbers and evaluate the
department 's performance.
Another advantage of budgets is that they can be instrumental in identifying constraints and
bottlenecks. The earlier example of the power plant well illustrated this point. Efficient operation of
the power plant was limited by the supply of natural gas. A carefully developed budget will always
consider capacity constraints. Managers can learn well in advance of looming production and
distribution bottlenecks.

210461 92199 1 TM C Part 1 solutions Essay
Student Name
Name of the institute
Word Count: 1500+
Introduction
Budgets are used for detailed planning in the organization. Based on the budget, the resources are
allocated to different activities. Top management would create the budget but this budget should be
spread to low level management. One of the budget information problems is to cut short the
expenses in every department based on the constraints put up in budget. This budget information
problem is also rooted in the way resources are to be allocated in the organization. It can be said
that, 'resource allocation' is the biggest and painful task after the declaration of budget. The budget
information problem was limited in nature when the size of organizations was small. With ... Show
more content on Helpwriting.net ...
Every organization has to work inside the industry. The knowledge of industry would help
companies to take decision. Industry parameters like growth of industry, market share of different
firms in the industry would always firms to grow. Some of the industry parameters that should be
considered are:
What is the current shape of industry, is it the sunshine industry or a sun set industry. The analysis
around this area would help to analyse the future of industry are a whole.
What are the substitutes of products in this industry? How are these substitutes managed by different
firms?
What is the threat of new entrants and what is the cost of leaving this industry. Leaving the industry
should not be the best option but companies should always know the information about leaving the
company.
Solutions
The solutions to solve the budget information problem can be discussed as:
The management should have a policy to control both fixed and variable costs. Usually
organizations care about the fixed cost and they forgot about the variable costs. As discussed above
the budget information problem is that the control of fixed costs and variables costs is not
communicated to the low level management. The communication is the key to success for budget
information problem. It is recommended that management should adopt an approach of
communication wherein the top management can communicate freely with all the employees.
To solve the budget information problem, it is essential that

A Trip On A Family Vacation At California, Disneyland, The...
I've been on a family vacation for ten days that included a road trip to California, Disneyland, the
beach, and a family reunion camping trip. It was a pretty ambitious trip and has provided an
interesting reflection on budgeting – budgeting time, budgeting money, and budgeting food. I read
an article recently that said the biggest reason people are late is that they are too optimistic. I
laughed out loud when I read that. I so often optimistically try to fit in one more thing before I leave
and then end up leaving late or I get too optimistic about there not being any traffic and then I am
shocked when I hit traffic and arrive late. Truly budgeting time in a way that makes me not late
means budgeting for contingencies, allowing room for things to go wrong, and knowing everything
will not go as planned, but still being able to arrive on time. I have to put extra time into my time
budget, or I run out of time too soon.
I think the same is true for food and money too. I have to plan for contingencies, know everything
will not go as planned, and add in extra room when I can. I took money expert Dave Ramsey's
"Financial Peace University" class just before I left on vacation and so made an effort to budget my
vacation money the way he recommends, using envelopes for each category. I separated our travel
food budget into 10 envelopes, one for each day of the trip, and put cash into each envelope to use
on food each day. What a challenge that has been! There have been meals where

Questions On Article On ' 5 Budget Mistakes You 're Making...
5 Budget Mistakes You 're Making In Your Business Right Now
By Sherrell T. Martin | Submitted On October 26, 2014
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Expert Author Sherrell T. Martin
As we head into the 4th quarter, you are super focused on ending the year with a bang, right? It is
also the best time to start thinking about your plans for the upcoming year. Take a look at your
current year to date actual figures and answer these questions:
How ... Show more content on Helpwriting.net ...
Without it you are operating your business blindly. Trying to hit a target that you can 't even see.
Have you ever tried to shoot a dart at a bullseye? Very hard to do right. Well operating a business
without a budget is like trying to hit that same bulls eye in the dark. Impossible to hit that target...
unless you can see in the dark.
2. Not tracking against your actuals.
Once you have a budget you must compare how you are performing to that budget regularly.
Minimally once per quarter. If you don 't do this critical step then you have no idea how good or bad
you are doing as compared to that plan. Comparing your budget to your actuals helps you
understand what is really going on in your business. It also helps you see how your business is
trending year over year as well as compared to your industry competitors.
3. Not following your budget.
Once you create your budget you MUST FOLLOW IT. Say it with me I WILL FOLLOW MY
BUDGET. There is nothing worse than creating a budget and not following it. Why create a plan
and then place it in a drawer and never look it again? That is the equivalent of not having a budget at
all. Would you climb a mountain without a guide? No. Would you buy a house without determining
a budget around how much house you can afford and the taxes and the insurance and the utilities.
No. So why would you operate your business without a plan? Following your budget allows you to
see

Ryanair Plc : A British Airline And Will Provide A Brief...
Introduction:
This essay is about Easyjet Plc which is a British airline and will provide a brief summary about the
company. It will make arguments on how Management Accounting information could aid the
managers of the business, evaluating how Budgeting, Variance Analysis and Activity Based could be
utilized within the company and will provide ways in which the managers could keep in mind to
make recommendations and decisions.
EasyJet Plc:
EasyJet Plc founded in 1995 by a Greek Cypriot businessman Sir Stelios Haji–Ioannou, leading in
Europe and based at London Luton Airport. It operates over 600 routes across more than 30
countries, consists of over 200 Airbus aircraft and employ over 8000 people including 2,000 pilots
and over 4500 cabin ... Show more content on Helpwriting.net ...
The company's ambition is to be Europe's preferable airline for short distance destinations airline,
delivering safety, good value and service to customers.
Management Accounting Information in Easyjet:
Management Accounting Information is the process of planning, motivating and controlling.
Managers in a company such as this, act as to benefit of the business by preparing reports, accounts,
performance evaluation and operational control so that they can make day–to–day and short–term
decisions. Also, organisation has to be in the company and try to solve problems may have. It could
also help the managers
of EasyJet, by keeping records of any financial transactions the company has. Therefore, managers
of the business provide financial data to control the firm and make decisions.
Ratios are used by management accountants to evaluate the process. Efficiency is a ratio where
managers can decide whether the company can pay its debts. Another ratio is gearing, that shows the
long–term financial position of the business and profitability ratio shows the progress of the
business.
Furthermore, business managers in the company can measure any progress in the business and can
help to make decisions about bases, new routes, costs of flights and any opinion that passengers can
have during the flight. Also, managers in EasyJet Plc can control and give instructions for the
operation of each

Budgeting And Forecasting For Business
Budgeting and Forecasting for Business
By Steve AH Lloyd | Submitted On August 13, 2013
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Expert Author Steve AH Lloyd
Business purpose
The purpose of any budgeting or forecasting activity is to obtain a forward looking view of the
business in order to facilitate resource allocation and decision making. The financial forecasts you
prepare are a means to that end, not an end in themselves. You need to have this ... Show more
You, or one of your team, should be available to support them in this exercise.
This should give you the basic information to prepare your operating profit and loss.
You then need assumptions on
· Borrowings & Interest
· Tax
· Capex & disposals
· Working capital movements
· Share issues
· Dividends
To allow you to work up a balance sheet and cash forecast.
Ensure you leave time in the plan for your team to pull the various components together and for at

least one re–working of the budget if the original version is unsatisfactory.
Tools and systems
Everyone has access to Microsoft Excel and it is possible to build very effective budget systems
with this software. You need to be particularly aware of the risks of spreadsheets and the ease with
which errors can creep in.
Don 't exclude the use of specialist budgeting software. Well implemented, it can dramatically
reduce timescales and improve accuracy. Look for a product that allows you to control different
versions of the budget and that integrates well both with Excel and your main business software.
In the first year of use, you need to allow plenty of time for implementation.
You will probably end up with myriad versions of the budget applying different assumptions. Keep a
log of the versions with the changes that were made so that you know exactly what each version

Stewardship In The Air Force
Module five had a lot of familiar concepts that I've become accustomed with during my brief time in
the Air Force. For many of these concepts, I was able to get a more in–depth look into how they are
applied. One item I really took away from the module reading was the budget process and how the
different quarterly cycles work. Another process I learned a lot about was the Budget Execution
Review and how to properly forecast funding shortfalls. These items are currently not in my day–to–
day operations, but will be in my near future. Currently, my position in the squadron does not afford
many opportunities to apply resources stewardship skills. Managing people is the only facet of
resource stewardship that I directly impact. Other areas

An Exploration Of What Budgeting And Forecasting
Summary
This paper will be an exploration of what budgeting and forecasting are and how they are
determined and why they need to be re–evaluated. Furthermore, the hope is to uncover some of the
underlining causes that drivers that trigger the re–evaluations in our organization as well as discover
ways to mitigate those factors.
BackRound
Like any other business we need to lower our costs, we apparently have difficulties creating a
realistic budget, at least initially, and also have great difficulties with accurately forecasting. Are
budgeting problems for new products could be due to the fact that prospective costs on new parts
take a while to get properly entered into the system, combine that fact with a 12 month projection,
times the ... Show more content on Helpwriting.net ...
It is based on predicted expenses they may be fixed things like rent, leases or variable things such as
payroll, utilities and phone bills. Budget list your income and expenses, subtracting one from the
other to give you realistic numbers to guide you're planning. For example, if your budget shows that
your total expenses are greater than your total income, you must adjust your spending entries in your
budget to try and gain the profit income, you can match it against your payables to make sure that
you have enough money in the bank to meet your obligations. You can try to create a budget that
only spends what you make by using your current cash position and current sales and expenses to
guide you. If this is wrong this it creates a cash flow shortage. Budgeting relies more on recent
history, current contracts and income levels to set conservative income limits, as budgeting for
income optimistically might not be realistic and set your small project up for failure. A cash flow
budget does not show the monthly average amount of your expenses, but the exact expense amounts
each month when they come due. This allows you to budget lower payments for discretionary
spending in the months when you have high payables. When creating a budget, you set specific
spending limits in certain areas based on how much income you have. For example, you might
forecast that your payroll will be $100,000 per month, while a budget actually

Luxor Cosmetics Essay
"Case Analysis of Luxor Cosmetic"
REGIS UNIVERSITY
Date: March 25th, 2013
Week–4 assignment
MSAA 609: Cost Management
Executive Summary
An effective business strategy and budgeting is very essential in a manufacturing industry. A
company without a proper business strategy and master budgeting plan would usually faces
tremendous challenges and losses during its business operations. The importance of company's
business strategies and budgeting plans, as well as the challenges and losses in the absence of these
items has clearly presented in this case study. ("Wiley," 2013)
Luxor Cosmetics is a cosmetic company which manufactures variety of lipstick, nail polish, and
cosmetic cream ... Show more content on Helpwriting.net ...
For instance, from schedule A: inventory movement expressed in WSP in exhibit 1, shows that
Luxor's inventory increases every year, except its inventory on creams. (Hopkins, 2009)
Lipstick
Nail Polish
Creams
Ending inventory at 12/31/2007
9.5
9.5
9.5
11.5
11.5
9.5
13.5
14
9.5

15
14.4
9.7
The detail full version of this table is presented in appendix 1 in page number 8 (Hopkins, 2009).
The company's creams inventory remains constant because it does not follow a trend in innovation
and changes so often as the other products. The surplus in inventory is a big disadvantage since; last
year's products may not be in style this year in addition to the cost of storage. For all these reasons
their cash flow is less in comparison with previous years causing that Luxor Cosmetics keeps
increasing their bank loans, creating more debt, making it harder to pay out as 2011. In this
particular situation the company could have either decrease its budgeted sales (productions) or
increase its actual sales by improving more effective marketing strategy and research and
development of its products in the markets. This way their inventory would decrease and their cash
flow would increase. (Hopkins, 2009)
Further, through effective marketing strategy Luxor

Westport Electric Corporation
Management Control System
RESPONSIBILITY CENTERS:
REVENUE AND EXPENSE CENTERS
CASE 4–5. WESTPORT ELECTRIC CORPORATION
Disusun Oleh: AVRODYTAANDRIANTI – 120910006
ACCOUNTING DEPARTEMENT
FACULTY OF ECONOMIC AND BUSINESS
MA CHUNG UNIVERSITY
2013
TABLE OF CONTENT
Page
COVER ................................................................................. i
TABLE OF CONTENT ............................................................. ii
CHAPTER I. INTRODUCTION 1.1. Background of Case Study Selection ........................................
1 1.2. Motivation ....................................................................... 2 1.3. Research Question
............................................................... 2 1.4. The Aim / Objectivity
.......................................................... 2
CHAPTER II. LITERATURE REVIEW 2.1. Responsibility Centers
......................................................... 3 ... Show more content on Helpwriting.net ...
3. Research Question Related with responsibility centers in revenue and expense centers, there are a
few questions: 1. What should be done to address the glaring discrepancy there on the company
budget? 2. What revisions must be made in the budget approval procedure administration staff?
4. The Aim / Objectivity Analysis of the Westport Electric Corporation case study in expected to
contribute: 1. To evaluate what needs to be done in overcoming the discrepancies existing in the
company budget. 2. To find out what revision should be made in the procedure of approval anggran
staff administration.
CHAPTER II
LITERATURE REVIEW

The purpose of this part, the researchers wanted to describes and gives an overview about the theory
of what is needed to solve the problems raised and theories that are used are as follows:
2.1 Responsibility Centers Charles T. Horngren (1993:542) stated that one of the segments or sub–
unit and each organization and manager responsible for a set of specified activities. Higher level
managers, wider accountability center which managed and the greater number of subordinates
reporting to him. Anthony and Govindarajan (2007:128) stated that responsibility center is an
organization unit that is headed by a manager who is responsible for its activities. In a sense, a
company is a collection of responsibility centers, each of which is represented by a box on the
organization

APC 309 Strategic Management Accounting
Module Title: Strategic Management Accounting Module Code: APC309
Individual assignment
SUNDERLAND BUSINESS SCHOOL
Date: 16/04/2011
Introduction:
As Gowthope (2005, p.148) said that: "A budget is a plan, expressed in financial and/or more
general quantitative terms, which extends forward for a period into the future. Budgets are widely
used in organisations of all types and sizes." –Budgeting actually refers to the process that, after the
strategic plan of the business has been made, companies made a short term plan (usually one year)
to meet the strategic purpose. Traditional budgeting has offered a lot of contributions in so many
years‟ practice; no one has a better summary of all advantage of traditional budget as ... Show more
Traditional Budgeting Approach (TBA):
There are various methods to prepare a budget. Here we are concerned with the traditional approach
to budgeting known also as the incremental budgeting which involves basing next year‟s budget on
the current year‟s results plus an extra amount for estimated growth or inflation (APC309
Workbook, 2008).
It is claimed that in many organisations the traditional budgeting remains widespread, and that
99% of European and US companies are using budgets and have no intention of abandoning them, it
was also stated that over 60% of those companies claim that they are not highly satisfied with their
current budgeting systems and are continuously trying to improve the budgeting process to meet the
demands set for management in creating sustainable value (report: Better Budgeting, 2004, p.2–3).
From this perspective it is obvious that traditional budgeting approach and budgets in general hold
many benefits as well as problems.
Implementing TBA on a static market:
When implemented within businesses, such technique will be more suitable for firms where each
year‟s performance and activities are similar to the previous one and conditions are predictable, an
active market that can take up large sales which do not change much in relation with changes

Budgeting Process Paper
When developing a budget, the first step is having a written strategic plan. This help in budgeting
towards the organizations vision. The budget provides the financial resources to achieve goals. The
governing board or head of the organization should approve the budget and keep current with its
performance. The budget should be reviewed monthly to monitor performance, be familiar with all
expenditures, and safeguard against misappropriation of funds (Lotich, 2014). The budgeting
process looks several years into the future to identify a variety of financial needs that may be
growing while other are decreasing. Budgets need to show how the money is to be allocated and
spent (McCrie, 2007).
How are budgets created, implemented, and supervised ... Show more content on Helpwriting.net ...
TARR provides interest yield that is predicted by the investment over its projected useful life. This
is also known as the internal rate of return method. TARR uses a spreadsheet program. If the cash
flow is the same for each quarter the calculations are preformed easily. If the flow is uneven, a trial
and error process is necessary to get the net present value. Senior management is more like to
approve the project if the TARR is greater than the organization's cost of capital (McCrie,

Article Report On ' Basic Budgets '
Basic Budgets 101
By PD Richmond | Submitted On August 06, 2015
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Expert Author PD Richmond
The budget is the basis for any form of financial stability, from household to business to country.
So what is a budget and how will it help?
It 's not a magic fix to money problems, quite the reverse, it is a tool to help you see where the
problems are. If you 're overspending then a budget will help you see where your problems are, but
it won 't fix them. That 'll be down to you to spend less. There 's no other way to do it.
But it can make a big difference in telling you where your money is going. That £2 a day on a
coffee, £3 on a sandwich and £8 on a pack of cigarettes? That comes to £4745 per year. Surprised?
That 's where the budget will help you.
How do you set up a budget?
There are two routes to go down, you can either build your own budget or use a template. I would
always recommend building your own budget, it 's tailored to exactly what you want see and is as
simple as you make it. The problem with templates is that they can be incredibly hard to customise
and get the information that would be useful to you.
That being said, there are good

Tips For Stretching It Budgets
Tips for Stretching IT Budgets
In today's multifaceted business environment, technological needs are constantly changing. In fact,
now days IT has became a critical initiative for success. With the widespread use of IT,
organizations face the challenge of increasing competition, expanding markets, and rising customer
expectations. This increases the pressure on organizations to implement various financial budgeting
strategies that could potentially lower the cost. Therefore, a concept that recently has gain
momentum, and is becoming a popular practice in most organizations is IT budgeting. According to
Baker (2009) the six strategies that are effective in controlling IT budgets are: repurposing the
already implemented software, efficiently ... Show more content on Helpwriting.net ...
In other words, which means to expand the use of the same software towards different
functionalities, for instance utilizing the Numara FoorPrints software from IT services to HR
department (Baker, 2009).
For an effective IT budgeting, IT leaders need to execute viable decision–making ideas that can
result into monetary savings in the long run (Heier et al., 2008). Similarly, repurposing of the
software positively effects the organization, by saving an amount that would have been spent on a
new software purchase, and creating some extra budget that could be invested towards other
strategic investments or initiatives (Heier et al., 2008). In terms of the operations cost, even though
the repurpose might slightly increase its maintenance cost if the software has already been used for
many years, but still by evaluating the whole operational budget for two different functions it still is
a cost effective–strategy (Heier et al., 2008). Additionally, it serves as a valuable asset to the
organization, in terms of saving both time and money of their IT staff, as they no longer are learning
totally new software.
On the downside, there might be certain hidden operational costs involved that might require more
maintenance, for instance the software can have limited memory or processing capacity, so in such a
case it might actually cost more to repurposing the same software (Heier et al., 2008).

Interview With Chief Financial Officer Essay
Interview with Chief Financial Officer
Carolinas Healthcare System is a large not for profit health care system, with over 40 hospitals
across 900 locations in North and South Carolina. Carolinas Healthcare Pineville is one of the acute
hospitals within this large organization (CHS, n.d.). It takes integration, coordination and planning
to operate a profitable facility in this current climate. P. Hiltz contributes to this coordination and
planning for Carolinas Healthcare Pineville. During an interview conducted on October 28, 2014, P.
Hiltz shared his background, roles and responsibilities, budgeting practices and concerns for the
future, as it relates to CHS Pineville. He also shared his predictions of future occurrences, as it
relates to nurses. Chief financial officers are currently facing many challenges as it relates to
planning a budget. P. Hiltz also elaborated on these challenges.
Educational Background and Experience Related to this Role
P. Hiltz is a graduate of NC State University, with an undergraduate degree in engineering. He
became a member of the Air National Guard and worked in logistics, which he stated (personal
communication, October 28, 2014) prepared him for his current role. He later obtained his Masters
in Healthcare Administration from MUSC, which led to his employment at CHS Pineville in 2009.
Current Title and Role Responsibilities
As the Assistant Vice President of Administration, P. Hiltz (personal communication, October 28,
2014) has

Analysis Of 2014 / 2015 Annual Budget
Analysis of 2014/2015 Annual Budget In the 2014–2015 budget, whose fiscal year is July 1st,
2014–June 30th, 2015, Gallatin had a proposed total municipal general fund of $34,259,839. The
estimated total funds for the 2014 fiscal year was $39,246,745 and the actual available funds for
2013 fiscal year was 38,253,991. The actual total revenue in 2013 was $28,750,055. In 2014, the
estimated revenue was $29,406,004 and the proposed total revenue for 2015 is $27,216,293. The
majority of the revenue is made up from city taxes, with an estimated tax revenue of $19,441,120 in
2014 and a proposed tax revenue of $20,434,577 in 2015 (2014–2015 Annual Budget). This is
interesting because property taxes are 99 cents for every $100 and taxes have ... Show more content
on Helpwriting.net ...
Because of this increase, its proposed total revenue has increased by over $3 million in the last two
years. It appears the overall revenue funds will actually take an expected decline after a slight
increase in 2014, and the proposed available funds are over 5 million dollars less than 2014, but
overall the revenue for the 2015 fiscal year seems to be on pace. This is most likely due to recent
drastic fluctuation in gasoline prices in the United States, due to the lowering of oil prices per gallon
over seas. In 2013, the average price for a gallon of gas was well over three dollars, but now it's just
barely over two dollars in Middle Tennessee, and it had begun dropping in 2014 as well. While the
budget has its limitations with gas prices, it's still taking those factors into account.
The unexpended and unencumbered funds for Gallatin, in the 2015 fiscal year, is also significant
when looking at the total revenue of the budget. After receiving just over $28 million in 2013, the
2014 budget estimated unexpended appropriations of over $32 million, and yet only proposed
$28,882,108 for 2015. Some of the subcategories included are parks and recreation, debt services,
and public works, but the highest producing subdivision is public safety, which contributed $11
million dollars in appropriations in 2013. The 2015 proposal for public safety is just a little of $12
million (2014–2015

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