country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Essential Financial Elements Of Budget

tag 0 Download5 Pages 1,168 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Diuscuss about the Essential Financial Elements of Budget.
 
 

Answer:

Introduction:

Budget is financial expression that is used for a fixed period of time, which can be both planned and unplanned. The revenues and the sales records is an important part that is included within the budget. The budget also includes strategic plan that includes all the measurable unit of a business.

The budget also includes the entire sum of money and the summary of all types of expenses and also consists of all the summary of fulfilling the expenditure. The reasons for planning are for asset portion, arranging, coordination, control and inspiration. It is additionally a critical apparatus for basic leadership, observing business execution and gauging pay and use. With appropriate planning, constrained assets are overseen effectively.

Budget is an essential part of business as it gives the owner an opportunity to predict the level of profit. The financial performance of a company can also be predicted with the help of budget. The financial framework and important financial decisions are also an important part of the budget. It is important to manage the budget efficiently which will help to deal with all the expenditure of the business. Proper allocation of the budget helps to ensure that the money is spent properly and there is no wastage. Budgeting also helps to predict the financial and economical crisis situation.. Financial success of a business can also be predicted with the help of principles of budget. The budget also provides information about the total expenditure spend in a financial year. The success of the budget depends on the accuracy of information that is used in making the budget.

The level of profit for the future can also be predicted with the help of budget. It is important to collect accurate financial information in order to prepare complete budget of a financial year. Timely preparation of the budget is also essential as late but it could cost financial loss of a company.

All segments of the business are included within the budget. Employees from all the department of a company had been included in the budget making process. There is also a committee within the business whose role is to monitor the performance of budget and also make necessary changes and correction. Decisions that are made by the budget committee can have significant impact on the financial performance of a company. It is the duty of the budget committee to ensure that all the resources are used properly. They also need to set certain benchmark to determine the performance of the company. Hence, the duty of the budget committee is regarded as one of the most crucial job of business.

Organizational charts are used as a part of budget construction process. Each component of the chart is involved in the process of budget making. All the information that are available in the organizational chart needs to be compiled together in order to make an overall planned budget. With the help of all the information a critically well a critically well planned budget can be prepared. The entries of the organisational chart follow a top-down mandate. There is also bottom up rule that is used by some of the business.

There are various types of budgets that are used by various types of business depending up on the Assets and revenue.

 

Master Budget: this is regarded as the most aggregate type of company’s budget that aims to design the complete picture of the financial activities of a company. All important parameters like sales assets operating and income streams are all included within the master budget. The overall aim of the master budget is to evaluate the performance of the company. Which type of budget is mainly used in large scale companies keep a track record of individual employees.

Cash Flow Budget: the track record of cash flow in and out is kept with the help of this type of budget which is within a definite time period. With the help of this budget the inflow of cash within a company can be managed efficiently. Factors such as accounts payable and accounts receivable are monitored with the help of this kind of budget. The future prediction of cash flow can also be made. The future cost of company’s raw material can also be predicted.

Financial Budget: With the help of financial budget a company is able to deal with strategy regarding acid cash flow expense and income. The total financial picture and health of a company can usually be derived with the help of financial budget. The stock value of the share of company can also be calculated and predicted with the help of financial budget.

There are two options, which have been considered by Archer. The first option is increasing the cost of advertisement by $600 per month. The second option is to improve the quality of materials that is used in the manufacturing process unit. As the quality of the material will be improved it will increase the cost of the goods sold by 65%. Nevertheless it will be also provide better sales for the same amount of product being sold. The marketing manager of the company has predicted that using either of the option will result in increase of sale by 25% per month which was otherwise 20% previously.

Archer Company prepare its budget on 31st March 2016 which is the end of the first quarter of a financial year. In applying both the options the sales remains the same where is the cost of goods that are being sold will increase by 65% of the sales revenue the gross profit can be calculated by subtracting the sales value from the cost of goods that are sold. The gross profit in case of the first option is higher than that in the second option. In case of first option the cost of sales and advertising very increased by $600 per month. The net income tax on total earning of the company is calculated by considering revenue and subtracting the overall cost of the business that is spend on income tax and other business tax.

 

Conclusion:

The statement of the budget income contains all of the line items that is found in normal statement of income. The projection is the only exception in this case of the level of income statement that is predicted for the future budget. This thing is generally comp I'll from number of other budgets and the accuracy level may vary on real scale.

The statement for budgeted income is one of the essential financial elements of a company that is used for testing the financial performance and the future of a company. When the budget income statement is used in combination with budgeted balance sheet it also helps to reveal the scenario that may not be financially supported. For example, in case when the company is under which debt cannot be predicted. The remedy for this situation can be done by altering the budget plans.

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Essential Financial Elements Of Budget. Retrieved from https://myassignmenthelp.com/free-samples/essential-financial-elements-of-budget.

"Essential Financial Elements Of Budget." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/essential-financial-elements-of-budget.

My Assignment Help (2018) Essential Financial Elements Of Budget [Online]. Available from: https://myassignmenthelp.com/free-samples/essential-financial-elements-of-budget
[Accessed 09 April 2020].

My Assignment Help. 'Essential Financial Elements Of Budget' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/essential-financial-elements-of-budget> accessed 09 April 2020.

My Assignment Help. Essential Financial Elements Of Budget [Internet]. My Assignment Help. 2018 [cited 09 April 2020]. Available from: https://myassignmenthelp.com/free-samples/essential-financial-elements-of-budget.


MyAssignmenthelp.com delivers assignment help to millions of students of USA. We have in-house teams of assignment writers who are experts on wide ranges of subjects. We have appointed teams of native writers who provide assignment help to students in New York City and all over the USA. They are skilled assignment writers who successfully cater to search terms like do my assignment in the USA

Latest Management Samples

MNG93211 Managing Information Systems

Download : 0 | Pages : 14

  Answer: Introduction The intent of this paper is to present a report related to the implementation of an information system in Optus Company to assist it in improving its procedures and productivity in the industry. The information system could be any organized combination of people, software, data resources, communication networks, hardware, process, and policies that recovers, stores, converts, and distributes information in a compa...

Read More arrow Tags: Australia New South Wales Management Information System University of New South Wales Humanities 

HRMT20024 Banking And Financial Sector For Highly Competitive Market

Download : 0 | Pages : 12
  • Course Code: HRMT20024
  • University: Central Queensland University
  • Country: Australia

Answer: Introduction In the workplace, it can be said that to attract and retain the employees is considered as one of the motive of the organization. It is considered as the concept that states that retention in the workplace is important so that culture of the company can be maintained. If employees are retained then positive impact can be seen on the overall activities assigned by the top management. But in the present scenario, attraction...

Read More arrow

MNG 01222 Facility And Risk Management At IBIS For Australian Government

Download : 0 | Pages : 13

Answer: The notion of risk Risk identification According to the AS/NZS ISO 31000:2009, as cited in The Australian Government (2009), the risk is the effect of uncertainty on objectives that could be positive or negative and could involve different aspects. Risk management reflects the management policies, procedures and practices that could be applied by organizations for the purpose of establishing tasks. It includes several activities like...

Read More arrow

HC2121 Comparative Business Ethics And Social Responsibility Method

Download : 0 | Pages : 7

Answer: Introduction Privacy, trust, and data security are intertwined according to ethics and laws. Personal information is so important for a person. It cannot be used by anyone without the information to that person. It is an ethical thing to secure personal information to every person.  Privacy protection provisions rely on trust. Security providers are provided grantee to their data. Violation of data security is also a crime, as pe...

Read More arrow

BUSN 5061 Sexual Harassment In Workplaces For Mental Stability

Download : 0 | Pages : 8

Answer: The places of work of a human being is one of the places wherein the individual spends a majority of their time. The most common type of harassment that is faced by the employees of the organization is the harassment that face in terms of the sexual discrimination within the workplace (Williams, 2018). This is generally faced by the female employees of the organization as is reported in the majority of the cases. The major common good ...

Read More arrow
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,249,346

Orders

4.9/5

Overall Rating

5,068

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 4/5

248 Order Completed

100% Response Time

Lloyd Bernabe

MSc in Accounting

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

752 Order Completed

100% Response Time

Hugh Cleave

Masters in Human Resource Management (MMgt, HRM)

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

134 Order Completed

95% Response Time

Thomas Nelson

MS in Information Systems Technology with Specialization in Database Administration

New Jersey, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

755 Order Completed

95% Response Time

Douglas Cowley

Masters in Finance with Specialization in Audit

Wellington, New Zealand

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

Just submitted my first assignment, and so happy with the quality! Will highly recommend.

flag

User Id: 400281 - 09 Apr 2020

Australia

student rating student rating student rating student rating student rating

work done nicely on time. the price was so affordable and reasonable. this is my fourth assignment done by the site.

flag

User Id: 368625 - 09 Apr 2020

Australia

student rating student rating student rating student rating student rating

The assignment requirements was met and the assignment was delivered timely. Pleased with the service provided and would recommend it if you are in a rush and other commitments! Worth it for the price paid as quality work was provided.

flag

User Id: 117708 - 09 Apr 2020

Australia

student rating student rating student rating student rating student rating

Assignment requirements were met adequately. Expert worked on the assignment swiftly and delivered the assignment timely.

flag

User Id: 117708 - 09 Apr 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?