Capital Investment and Budget Planning
Capital and Investment Budget Planning
For all governments, long-term expenses are something they must deal with. This is to ensure that the continuing needs of an area are met through facilitating economic growth and addressing the demands of the general public. To fully understand this process requires examining the capital and investment budget planning process. This will be accomplished by comparing the city of Toronto's budget presentation with the 8 step method and carefully analyzing this model. Together, these elements will highlight how administrators are able to account for spending on large projects and ensure that there is enough funding to meet these needs every single year.
Part
Compare Toronto's capital budget presentation with the eight step model
For the most part, the city of Toronto is following the eight step model to highlight the long-term needs of the area between 2009 and 2018. Some of the different elements that are included in the proposal which are following the guidelines include: identifying current service characteristics, determining environmental trends, developing service objectives, creating a list of capital project / estimated costs, determining the available financial resources and selecting a subset of projects that will help with five years of planning. These different factors are ensuring that the city is able to improve its infrastructure, enhance its quality of life and create an environment. That is taking into account the needs of stakeholders. ("2009 to 2013 Recommended Capital Budget and Plan," 2008) ("Capital Assets," n.d.)
For example, inside the city's projected capital expenditures there is a focus on several different areas. The most notable include: public safety / emergency services, transit, public spacing, enhancing the quality of life inside the community / protecting the ecology and improving public services. Each of these areas is concentrating on how the city can fund these projects over the long-term in order to address the continuing needs of Toronto. ("2009 to 2013 Recommended...
Capital Investment Risks Capital investments: Cloud computing for public universities Cloud computing has many advantages over traditional, hardware-bound computing. "In the current financial crisis and being challenged by growing needs, universities are facing problems in providing necessary information technology (IT) support for educational, research and development activities" (Mircea & Andreescu 2011:1). Public universities have been particularly hard-hit financially because of their reliance upon state funding. States are struggling to provide the bare
Furthermore, capital gains normally tend to be spread across a wider income scale than many believe. According to the IRS Individual Income Tax Returns, Preliminary Data, 1992 federal income tax returns, 55% of returns claiming capital gains were from incomes of $50,000 or less, including a capital gain (Thorning, 1995). What this information appears to come down to is that the capital gains tax affects almost everyone, which happens
Operating expenses include selling and administrative expense. Ordinarily, a forecast or budget for selling expenses is prepared together with the sales budget or profit target because selling efforts such as promotions, commissions and salaries of the sales staff are directly related to sales. Selling expenses may either be variable or fixed. Administrative expenses include projected administrative costs for other than production or selling activities. These expenses are mostly composed of
If the estimates from the investment project are found to be viable, then the development of the capital budget for the particular project commences. The project investment will be included with the master budget of the entity along with the other investments. The process ends on reevaluation. Because of the long-term nature of capital investment projects, the estimates are coupled with certain risks. In view of this, an approved
There are many firms that exist and operate within the capital management realm. Some companies operate and expand via their internal income and operations. There are other firms that are not currently self-solvent. However, the latter is commonly able to expand through capital investment and fundraising. The goal with such firms, of course, is to ramp up business levels, pricing structures and so forth so as to get to a
Are visits to customers scheduled so that sales staff are available to customers at all times in the showroom? Are the full time carpenters sufficient to handle timely output? Would one additional full time person be more financially beneficial than using four on-call contractors? Income can be categorized as point of sale or accounts receivable. Expenses can be categorized as fixed (insurance, rent, etc.) and variable (supplies, utilities, etc.). Everything
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now