Budgeting basics and beyond

"Budgeting Basics and Beyond, 4th 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. It is packed with case studies, illustrations, exhibits, forms, checklists, graphs, sa...

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Bibliographische Detailangaben
Hauptverfasser: Shim, Jae K, Siegel, Joel G, Shim, Allison I
Format: E-Book
Sprache:Englisch
Veröffentlicht: Newark Wiley 2011
John Wiley & Sons, Incorporated
Wiley-Blackwell
Ausgabe:4th ed.
Schriftenreihe:Wiley corporate F & A.
Wiley Corporate F&A series
Schlagworte:
Budget in business
ISBN:1118096274, 9781118096277, 1118127978, 9781118127971, 9781118387023, 1118387023
Online-Zugang:Volltext
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  • Machine generated contents note: About the Authors.Preface.Chapter 1: The What and Why of Budgeting: An Introduction.Chapter 2: Strategic Planning and Budgeting: Process, Preparation and Control.Chapter 3: Administering the Budget: Reports, Analyses, and Evaluations.Chapter 4: Break-even and Contribution Margin Analysis: Profit, Cost, and Volume Changes.Chapter 5: Profit Planning: Targeting and Reaching Achievable Goals.Chapter 6: Master Budget: Genesis of Financial Forecasting and Profit Planning.Chapter 7: Cost Behavior: Emphasis on Flexible Budgets.Chapter 8: Evaluating Performance: The Use of Variance Analysis.Chapter 9: Manufacturing Costs: Sales Forecasts and Realistic Budgets.Chapter 10: Marketing: Budgeting for Sales, Advertising, and Distribution.Chapter 11: Research and Development: Budgets for a Long-term Plan.Chapter 12: General and Administrative Costs: Budgets for Maximum Productivity.Chapter 13: Capital Expenditures: Assets to Be Bought, Sold, and Discarded.Chapter 14: Forecasting and Planning: Reducing Risk in Decision Making.Chapter 15: Moving Averages and Smoothing Techniques: Quantitative Forecasting.Chapter 16: Regression Analysis: Popular Sales Forecast System.Chapter 17: Cash Budgeting and Forecasting Cash Flow: Two Pragmatic Methods.Chapter 18: Financial Modeling: Tools for Budgeting and Profit Planning.Chapter 19: Using Software Packages and E-Budgeting: Computer-based Models, Spreadsheets, and Web-based System.Chapter 20: Capital Budgeting: Selecting the Optimum Long-term Investment and Real Options.Chapter 21: Budgeting for Cost Management: Activity-based Budgeting and Life-cycle Budgeting.Chapter 22: Zero-base Budgeting: Priority Budgeting for Best Resource Allocation.Chapter 23: Managers' Performance and Balanced Scorecard: Evaluation on the Division Level.Chapter 24: Budgeting for Service Organizations: Special Features.Chapter 25: Budgeting for Nonprofit Organizations: Diverse Types.Chapter 26: Using Management Games for Executive Training.Appendix I: Present and Future Value Tables.Appendix II: Statistical Table.Glossary of Budgeting and Planning Terms.Index.
  • DEVELOPING FINANCIAL MODELS
  • 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
  • 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
  • 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&amp -- D COSTS -- R&amp -- D PLANNING -- FUNDING LEVEL -- R&amp -- 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&amp -- D -- R&amp -- D RISK -- SUMMARY -- CHAPTER 12 General and Administrative Costs: Budgets for Maximum Productivity -- BUDGET PROCESS -- Headcount Forecasting -- ANALYSIS AND EVALUATION -- COST CONTROL -- EMPLOYEES -- SUMMARY
  • 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