Franklin

Budgeting Basics and Beyond.

Author/Creator:
Shim, Jae K.
Edition:
4th ed.
Publication:
Hoboken : John Wiley & Sons, Incorporated, 2011.
Series:
Wiley Corporate F&a Ser.
Wiley Corporate F&a Ser. ; v.574
Format/Description:
Book
1 online resource (561 pages)
Subjects:
Budget in business.
Form/Genre:
Electronic books.
Summary:
A convenient and up-to-date reference tool for today's financial and nonfinancial managers in public practice and private industry If the very thought of budgets pushes your sanity over the limit, then this practical, easy-to-use guide is just what you need. Budgeting Basics and Beyond, Fourth Edition equips you with an all-in-one resource guaranteed to make the budgeting process easier, less stressful, and more effective. The new edition covers rolling budgets (forecasts), activity-based budgeting, life-cycle budgeting. Cloud computing, Balanced Scorecard, budgeting for nonprofit organizations, business simulations for executive and management training, and much more! Includes several new software packages, computer-based models and spreadsheet applications, including Value Chain Management software, Financial Planning and Performance software, Web 2.0, Cloud computing, and capital budgeting software Features case studies, illustrations, exhibits, forms, checklists, graphs, samples, and worked-out solutions to a wide variety of budgeting, planning, and control problems Offers financial planning and new types of financial modeling, variance analysis, Web-based budgeting, active budgeting illuminating "what-if" analyses throughout, spreadsheet applications, break-even analysis, project analysis, and capital budgeting Budgeting Basics and Beyond, Fourth Edition is a practical, easy-to-use problem-solver and up-to-date reference tool for today's financial and nonfinancial managers in public practice and private industry.
Contents:
Intro
Budgeting Basics and Beyond
Contents
About the Authors
Preface
CHAPTER 1 The What and Why of Budgeting: An Introduction
PLANNING
TYPES OF BUDGETS
Master Budget
Operating and Financial Budgets
Cash Budget
Static (Fixed) Budget
Flexible (Expense) Budget
Capital Expenditure Budget
Program Budget
Incremental Budget
Add-On Budget
Supplemental Budget
Bracket Budget
Stretch Budget
Strategic Budget
Activity-Based Budget
Target Budget
Rolling (Continuous) Budget
Probabilistic Budget
BUDGETARY PROCESS
Bottom-Up versus Top-Down
BUDGET COORDINATION
DEPARTMENTAL BUDGETING
ACTUAL COSTS VERSUS BUDGET COSTS
BUDGET REVISION
BUDGET WEAKNESSES
BUDGETARY CONTROL AND AUDIT
COMPUTER APPLICATIONS
MOTIVATION
ADVANTAGES AND DISADVANTAGES OF BUDGETS
BUDGETARY SLACK: PADDING THE BUDGET
SUMMARY
CHAPTER 2 Strategic Planning and Budgeting: Process, Preparation, and Control
BUDGETING
Example 1
STRATEGIC PLANNING
SHORT-TERM PLANS
LONG-TERM PLANS
CHOOSING A BUDGET PERIOD
ADMINISTERING THE PLAN
PROFIT PLAN
OPERATIONAL PLAN
DEVELOPMENT PLAN
CONTINGENCY PLANNING
BUDGET PROCESS
DEPARTMENTAL BUDGETS
BUDGET ACCURACY
Example 2
REPORTS
BUDGET REVISION
PERFORMANCE MEASURES
CONTROL AND ANALYSIS
SUMMARY
CHAPTER 3 Administering the Budget: Reports, Analyses, and Evaluations
TYPES OF REPORTS
Periodic Reports
Advance Reports
Special Reports
BUDGET MANUAL
BUDGET SHEET
PERFORMANCE REPORTS
BUDGET AUDIT
THE BUDGET COMMITTEE
BUDGET CALENDAR
CHAPTER 4 Break-Even and Contribution Margin Analysis: Profit, Cost, and Volume Changes
QUESTIONS ANSWERED BY BREAK-EVEN AND CONTRIBUTION MARGIN ANALYSIS
APPLICATIONS OF THE CVP MODEL
CONTRIBUTION MARGIN INCOME STATEMENT.
Contribution Margin
Example 1
Break-Even Analysis
Example 2
Graphical Approach in a Spreadsheet Format
Determination of Target Income Volume
Example 3
IMPACT OF INCOME TAXES
Example 4
Margin of Safety
Example 5
SOME APPLICATIONS OF CONTRIBUTION MARGIN ANALYSIS AND WHAT-IF ANALYSIS
Example 6
Example 7
Example 8
Example 9
Example 10
SALES MIX ANALYSIS
Example 11
Example 12
Example 13
Example 14 (Sales Mix Analysis for Service Organizations)
Contribution Margin Analysis and Nonprofit Organizations
Example 15
CVP ANALYSIS WITH STEP-FUNCTION COSTS
Example 16
IMPORTANCE OF IDENTIFYING VARIABLE AND FIXED COSTS-CVP-BASED STRATEGIES
CVP Analysis under Uncertainty
Assumptions Underlying Break-Even Contribution Margin Analysis
SUMMARY
CHAPTER 5 Profit Planning: Targeting and Reaching Achievable Goals
GOAL CONGRUENCE
PROFIT TARGETS
OBJECTIVES IN THE PROFIT PLAN
ROLE OF NONFINANCIAL MANAGERS
ASSUMPTIONS
ALTERNATIVES
RESPONSIBILITY
PARTICIPATION
SUBORDINATES
COORDINATION
SCHEDULING
PROBLEMS
CONTROL, EVALUATION, AND ANALYSIS
INTERNAL CONTROLS
REAL-LIFE ILLUSTRATIONS IN PROFIT PLANNING
SUMMARY
CHAPTER 6 Master Budget: Genesis of Financial Forecasting and Profit Planning
COMPREHENSIVE SALES PLANNING
Sales Planning Compared with Forecasting
Testing the Top Line
Example 1
SALES BUDGET
Schedule 1
MONTHLY CASH COLLECTIONS FROM CUSTOMERS
PRODUCTION BUDGET
Schedule 2
INVENTORY PURCHASES, MERCHANDISING FIRM
DIRECT MATERIAL BUDGET
Schedule 3
DIRECT LABOR BUDGET
Schedule 4
FACTORY OVERHEAD BUDGET
Schedule 5
ENDING FINISHED GOODS INVENTORY BUDGET
Schedule 6
THE COST OF GOODS SOLD BUDGET
Schedule 7
SELLING AND ADMINISTRATIVE EXPENSE BUDGET
Schedule 8
CASH BUDGET.
Schedule 9
BUDGETED INCOME STATEMENT
Schedule 10
BUDGETED BALANCE SHEET
Schedule 11
SOME FINANCIAL CALCULATIONS
USING AN ELECTRONIC SPREADSHEET TO DEVELOP A BUDGET PLAN
FINANCIAL FORECASTING: THE PERCENT-OF-SALES METHOD
Example 2
Schedule 12
SUMMARY
CHAPTER 7 Cost Behavior: Emphasis on Flexible Budgets
A LOOK AT COSTS BY BEHAVIOR
Variable Costs
Fixed Costs
Mixed (Semivariable) Costs
ANALYSIS OF MIXED (SEMIVARIABLE) COSTS
HIGH-LOW METHOD
Example 1
REGRESSION ANALYSIS
Example 2
FIXED BUDGETS VERSUS FLEXIBLE BUDGETS AND PERFORMANCE REPORTS
Example 3
Example 4 (Budgeting for a Health Care Provider)
SUMMARY
CHAPTER 8 Evaluating Performance: The Use of Variance Analysis
USEFULNESS OF VARIANCE ANALYSIS
Advantages of Standards and Variances
STANDARD SETTING
Types of Standards
PLANNING VARIANCE
SALES VARIANCES
Example 1
COST VARIANCES
MATERIAL VARIANCES
Example 2
Example 3
LABOR VARIANCES
Example 4
OVERHEAD VARIANCES
Variable Overhead Variances
Example 5
Fixed Overhead Variances
Example 6
Variances for Total Overhead
Example 7
Example 8
INTERRELATIONSHIP OF VARIANCES
MIX AND YIELD VARIANCES FOR MATERIAL AND LABOR
Material and Labor Mix Variances
Formulas
Material and Labor Yield Variances
Formulas
Probable Causes of Unfavorable Mix Variances
Probable Causes of Unfavorable Yield Variances
Example 9 (Mix Variances)
Example 10 (Yield Variances)
PROFIT VARIANCE ANALYSIS
Causes of Profit Variance
Example 11 (Profit Variance Analysis)
Example 12 (Sales Mix and Quantity Variances)
NONMANUFACTURING ACTIVITIES
ILLUSTRATIVE VARIANCE ANALYSIS REPORT FOR A SERVICE BUSINESS
VARIANCES TO EVALUATE MARKETING EFFORT
Variances in Selling Expenses
Sales Personnel Performance.
ILLUSTRATIVE MARKETING PERFORMANCE REPORT
How to Analyze Salesperson Variances
Example 13
Example 14
Variances in Warehousing Costs
Example 15
VARIANCES IN ADMINISTRATIVE EXPENSES
CAPITAL EXPENDITURES
VARIANCE ANALYSIS REPORTS
Appraisal of Marketing Department
SUMMARY
CHAPTER 9 Manufacturing Costs: Sales Forecasts and Realistic Budgets
ILLUSTRATION
Sales Budget
Example 1
Production Budget
Example 2
Direct Material Budget
Example 3
Direct Labor Budget
Example 4
Factory Overhead Budget
Example 5
PLANNING AND CONTROL OF MATERIAL PURCHASES AND USAGE
MATERIALS BUDGETS
Budgeting Individual Items of Material
Budget Based on Production Factors
Example 6
MATERIALS PURCHASE BUDGET ILLUSTRATED
Example 7
PLANNING AND CONTROL OF DIRECT LABOR
PLANNING AND CONTROL OF FACTORY OVERHEAD
SUMMARY
CHAPTER 10 Marketing: Budgeting for Sales, Advertising, and Distribution
MARKETING BUDGETS
SELLING EXPENSES
ADVERTISING AND SALES PROMOTION
Percentage of Sales or Profit
Unit Sales Method
Objective-Task Method
DISTRIBUTION COSTS
ANALYSIS AND EVALUATION OF DISTRIBUTION COSTS
CONTROL OVER DISTRIBUTION COSTS
PACKAGING
TRAVEL AND ENTERTAINMENT
BUDGET MEETINGS
SUMMARY
CHAPTER 11 Research and Development: Budgets for a Long-Term Plan
R&
D COSTS
R&
D PLANNING
FUNDING LEVEL
R&
D BUDGET
Example 1
Example 2
Example 3
Example 4
Example 5
Example 6
Example 7
Example 8
COORDINATION
ANALYSIS AND EVALUATION
CONTROL OVER R&
D
R&
D RISK
SUMMARY
CHAPTER 12 General and Administrative Costs: Budgets for Maximum Productivity
BUDGET PROCESS
Headcount Forecasting
ANALYSIS AND EVALUATION
COST CONTROL
EMPLOYEES
SUMMARY.
CHAPTER 13 Capital Expenditures: Assets to Be Bought, Sold, and Discarded
BUDGET PROCESS
AUTHORIZATION OF CAPITAL BUDGET
CAPITAL BUDGET FORMS
CAPITAL BUDGET
CAPITAL EXPENDITURE REPORTS
BUDGET REVISIONS
SPECIAL PROJECTS
ANALYSIS OF CAPITAL PROJECTS
CONTROL OVER CAPITAL EXPENDITURES
SUMMARY
CHAPTER 14 Forecasting and Planning: Reducing Risk in Decision Making
WHO USES FORECASTS?
FORECASTING METHODS
SELECTION OF FORECASTING METHOD
QUALITATIVE APPROACH
Expert Opinions
Delphi Method
Sales-Force Polling
Consumer Surveys
COMMON FEATURES AND ASSUMPTIONS INHERENT IN FORECASTING
STEPS IN THE FORECASTING PROCESS
SUMMARY
CHAPTER 15 Moving Averages and Smoothing Techniques: Quantitative Forecasting
NAIVE MODELS
Example 1
SMOOTHING TECHNIQUES
Moving Averages
Example 2
Exponential Smoothing
Example 3
Computer and Exponential Smoothing
SUMMARY
CHAPTER 16 Regression Analysis: Popular Sales Forecast System
LEAST-SQUARES METHOD
Example 1
Example 2
A WORD OF CAUTION
REGRESSION STATISTICS
Correlation Coefficient (r) and Coefficient of Determination (R2)
Example 3
Example 4
Standard Error of the Estimate (Se) and Prediction Confidence Interval
Example 5
Example 6
Standard Error of the Regression Coefficient (Sb) and t-Statistic
Example 7
USING REGRESSION ON EXCEL
SUMMARY
CHAPTER 17 Cash Budgeting and Forecasting Cash Flow: Two Pragmatic Methods
ACCOUNT ANALYSIS
Example 1
Example 2
Example 3
Example 4
CASH BUDGET
CASH VARIANCE ANALYSIS
Example 5
CASH FLOW SOFTWARE
A CAVEAT-PERILS OF SPREADSHEETS
SUMMARY
CHAPTER 18 Financial Modeling: Tools for Budgeting and Profit Planning
A FINANCIAL MODEL
BUDGETING AND FINANCIAL MODELING
USE OF FINANCIAL MODELING IN PRACTICE.
DEVELOPING FINANCIAL MODELS.
Notes:
Description based on publisher supplied metadata and other sources.
Local notes:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2021. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
Contributor:
Siegel, Joel G.
Shim, Allison I.
Other format:
Print version: Shim, Jae K. Budgeting Basics and Beyond
ISBN:
9781118127964
9781118387023
OCLC:
763160168
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