While additional sales might be classified as a relatively 'happy' change in circumstances, budget overruns are a more common unexpected occurrence. Budget overruns can occur for a number of reasons -- unforeseen technological or weather problems, bureaucratic red tape and delays, or a sudden rise in input costs. To ensure that such excesses are allowed for, it is a good idea to have as realistic a view as possible of the overall project, and plan for the possibility of cost overruns. For example, budget overruns are endemic to certain professions, such as the defense industry and construction, and it would be unrealistic to assume that every project will meet its budget target in these industries.
When forecasting, the likelihood of overruns should be assessed, using similar projects in the past as a point of comparison. Approval of overruns is more likely if the excesses are planned for and shown to be due to external environmental changes, rather than rooted in the incompetence of the project manager. But no matter how inevitable cost overruns may be, it is still essential that controls are put in place to reduce the risk of shortfalls. Having short-term...
Budget management analysis is used by mangers as a tool and helps determine that all resources available are being used efficiently. The budgets are determined yearly and are based upon the previous year's budget and variances. This paper will discuss specific strategies to manage budgets within forecast, compare five to seven expense results with budget expectations, describe possible reasons for variances, give strategies to keep results aligned with expectations, recommend
Certain specialists in the field have agreed upon the two most important principles that the budget, whether it is a governmental or corporate one, should follow. One of the two principles consists in the fact that the budget should be designed as a tool for planning and monitoring (Andrews, 2007). Similarities between the Federal Budget and the Corporate One As mentioned above, the two types of budgets are very distinct in areas like the development process, budget
Chapter 1: The Accounting Function in Microsoft Background of the Organization Microsoft Corporation is an American technology organization whose main center of operations are situated in Redmond, Washington. Founded by Paul Allen and Bill Gates in 1975, the company key operations encompass the discovery and development of manufacturing and licensing goods and services that are associated to computing (Bellis, 2017).In accordance to Statista (2017), the company has 124,000 employees across the world.
BHP Billiton Budget and Financial Planning Company Overview BHP Billiton is a global Anglo-Australian company specialized in petroleum, metal and mining. Headquartered in Melbourne, the BHP Billiton is one of the world largest mining company using the 2013 total revenue. The BHP Billiton was established in 2001, and has been ranked as a top performing mining company in the world. At the end of 2015 fiscal year, BHP Billiton recorded $44.6 Billion
Budgeting and Financial Planning Distinctions between budgeting & financial planning. The difference between budgeting and financial planning The difference between budgeting and financial planning Budgeting and financial planning are often used interchangeably in the speech of laypersons, when they are talking about the economic outlook of organizations. They are, however, very different processes, although the two are interrelated. One analogy is that of someone trying to maneuver the organization like a rowboat over a
Operational Plan and Correlating Budget Project Description The 4 West is an organization that delivers health care for the community. Recently, the organization has decided to replace the existing medical-surgical unit into a new acute care oncology unit. The oncology is a specialty in medicine that deals with cancer. The CNO (Chief Nursing Officer) has informed the nurse director that 4 west is to become a specialized oncology unit. Since the hospital
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