Detailed Instructions:
In a business setting, we are often asked to write a memo to
communicate with internal and external professionals. This
assignment further advances your communications within an
organization through the use of a memo.
Background:
As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are an active employee in the budgeting process. For years now, employees have not been in favor of budgeting. In fact, department managers have often expressed their degree of stress and feeling uncomfortable about the budget process and performance evaluations. This year, Jacob Reynolds, the controller, wants to try a different approach to promote employee support of the budget and, in turn, the organizational goals. With more employee feedback, the upper management can develop a more inclusive, advanced budgeting tool.
The controller asks you to develop a memo to be sent to department managers with a courtesy copy (cc) to the controller. The memo will introduce the new budget approach and the advantages of budgeting. The new budget approach is a participative budgeting process as opposed to less input on the part of employees. The desire is for department managers to obtain feedback from their team in order to submit a more collective budgeting tool for consideration from their area of responsibility.
In consideration of the background, prepare a memo in a Word document to submit to the department managers with a cc to the controller.
Budgeting Process- Company Name – Jackson Quality Sportswear ( JSQ). Company manufactures sport attire for men , women , youth and children Unfortunately employee have not been in favour of budgeting . Due to this department manager have often expressed thrie degree of stress and feeling uncomfortable about the budget process and performance evaluations
New Controller wants to try a different approach to introduce in Budget , to set up organization goal , with more employee feedback and Jacob wants more advanced budget with Budgetary advanced tool
Controller ask senior accountant to develop a budget process . While drafting budget process , Senior accountant should cover following points :
The Budget process is an important activity because the budget has a possible impact on companies future matter . While doing Budget , comoany needs to follow eith Top down or Bottom up approach . Top down approach mainly represents top management determine the overall Budhet period , This type of budgetary control can provide better decision than participative budgeting .
Where as Bottom up approach – in this approach can increase the motivation if employee to achieve organizational goals
Organization commitment is a positive dimension of the attitude of the employees related to performance
Participative Budgeting is a good communication tool because it allows top management to understand the problems of employees . This method will increase the motivation of employees to achieve Organization goals
Why Budget is important in this Organization – in any organization Budget is play an important role. In simple language , Budget will help any organization , to utilization of resources in effective manner to achieve overall objective of an organization .
Company create a separate team for Budget exercise . Budgetary team do complete analysis of past trend data to derived future number . Company concentrate on revenue budget , they prepare Revenue budget model after considering all relevant factor , pricing challenge , new area to enter , competitive market , market share etc . They do proper analysis of cost and any overrun in cost at present , try to reduce those leakage in futue and established control cost mechanism and try to impriove profit . They determined companies future expansion plan along with capex and determined return on investment ( ROI) . Whole preparing budget , team need to see movement of capex and EBITDA (Operating profit ) position
Budgeting system is a combination of panning as well as control of all financial parameter
Budget preparation and followed by monitoring of Budget is one of the important task . Manager of individual department should review actual position of the project vs Budgetary number . Any major variance in revenue , cost , need complete analysis . This monitoring process is mot important to established p[roper track between actual vs Budget number and take proper measure
Team should monitor whether capex plan are in place . they need to monitor whether benchmark Yield from Investment as per Budget vs Actual and take measure accordingly
Budhet also cover individual project wise Operating margin calculation as well as cash flow , Financial Arrangement , interest cost etc . Team need to review all number budget vs actual and any major variance like in case of Project are not making any money and continuous cash burn then team needs to more deep dive .
Above process is always important and pivot step for Budget process and most important is to compare with Actual data ( result ) and take corrective action in relates to any negative variance .
Each department has to submit their individual budget like , revenue team provide revenue Budget , Operation team provide complete material , Inventory budget . individual team will provide expenses budget , Corporate will provide general admin Budget . Treasury team will provide treasury budget basically movement of loan ( principal + Interest) , any further financing requirement , They will also provide cash flow projection for 1 to 5 years and consider all capex , operational cash ,etc .
Budget is a multi department work . Budget enable a business o accurately set goal, priority . An effective budget would provide revenue breakdown and tentative projected expenses . We need to breakdown budget by month wise or Quarter wise
Budget are necessary for evaluation the performance of Organization .
Detailed Instructions: In a business setting, we are often asked to write a memo to communicate...
Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are an active employee in the budgeting process. For years now, employees have not been in favor of budgeting. In fact, department managers...
General Instructions: For this case, you will be responsible for preparing a memo in a Word document to address the situation. Memo formats are available in Word under File, New, Search on Professional Memos or Memos for options. You can select a format or create your own memo in Word. If you create your own, be sure to follow general memo format rules such as Link (Links to an external site.) (Links to an external site.)Furthermore, the link contains helpful information...
As the senior accountant at Technology on Demand (TOD), which manufactures mobile technology such as flip phones, smartphones, notebooks, and smartwatches, you are an active employee in the budgeting process. For years now, employees have not been in favor of budgeting. In fact, department managers have often expressed their degree of stress and feeling uncomfortable about the budget process and performance evaluations. This year, Michelle Dodd, the controller, wants to try a different approach to promote employee support of the...
Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are responsible for assisting with employee related questions. JQS manufactures sport attire for men, women, youth, and children in bulk quantity on the...
Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are responsible for assisting with employee related questions. JQS manufactures sport attire for men, women, youth, and children in bulk quantity on the...
Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are responsible for assisting with employee related questions. JQS manufactures sport attire for men, women, youth, and children in bulk quantity on the...
Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo. Background: As the senior accountant at Technology on Demand (TOD), which manufactures flip phones, smartphones, notebooks, and smartwatches, you are responsible for assisting with employee related questions. TOD manufactures mobile technology such as flip phones, smartphones, notebooks, and smartwatches in bulk quantity on the...
In a business setting, we are often asked to write a memo to communicate with internal and external professionals. To further advance your learning of memo communication, this written case requests that you prepare a memo to communicate within the company. Background: As the senior accountant at Jackson Quality Sportswear (JQS), which manufactures sport attire for men, women, youth, and children, you are often asked to prepare various financial analysis necessary for decision making. Jacob Reynolds, the controller, asked you...
General Instructions: For this case, you will be responsible for preparing a memo in a Word document to address the situation. Memo formats are available in Word under File, New, Search on Professional Memos or Memos for options. You can select a format or create your own memo in Word. If you create your own, be sure to follow general memo format rules such as Link (Links to an external site.) (Links to an external site.)Furthermore, the link contains helpful information...
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