Solution. When an organization decides to enter in business, it needs to study and forecast various activities in order to minimize costs and maximize profits. This process involves budget preparation with objectives of same enlisted below:
a)It distributes/allocates organization's available funds on different levels of activities.
b)It facilitates in calculating variances(if any) by comparing actual budget reports from standard budget prepared.
c)It facilitates in drawing financial planning with organization's objectives.
Advantages of an effective budgeting process are enlisted below:
a)It provides estimates of costs involved and revenue earning capacity of such investment in different levels of activities of the organization which facilitates in decision making.
b)It allocates available capital of the organization to optimum use to meet its objectives.
What are the objectives of budgeting? What are some of the advantages of an effective budgeting process?
Briefly describe some of the advantages and disadvantages of a Zero Based budgeting process. How does this compare to the process used in your organization?
Why are budgets so important for organizations? What are some advantages to budgeting?
What are the advantages of budgeting? explain
What are six advantages of budgeting? How do these advantages demonstrate the managerial accounting roles of planning or control?
List the steps in the formal goal-setting process. What are some of the advantages for companies that use this approach? What are some of the problems that may arise from use of this approach (Chapter 6) Basic Elements of Planning and Decision Making
Explain the significance of the sales or revenue forecast to effective budgeting. What strategies might you employ to insure that sales or revenue forecasts are properly constructed to support the budget process?
What are the four objectives sought in effective cash management?
Please do some research on top down vs bottom up budgeting. In your post describe the differences between each of these styles of budgeting. Then describe the advantages and disadvantages of each. Then I would like you to state which method you would employ if you were able to choose the method at a company you worked for. Why did you pick the method that you did?
Can simulation analysis be used on capital budgeting problems? What would be the primary advantages and disadvantages of using simulation analysis on capital budgeting problems? Reply
Surveys show budgeting is regarded as one of the most important management tools by Asian companies. Required: (i) Discuss five (5) advantages of budgeting in planning and control. (ii) Identify three (3) guidelines that an organization needs to follow if budgeting is to be an effective motivational tool for employees. (16 marks)