The use of budgets in the improvement of management performance and Essay

The use of budgets in the improvement of management performance and control within global businesses - Essay Example What were relevant a century ago are no longer valid because of increased competition and ever changing products, their characteristics and consumer preferences. The following piece of information would be useful for companies presently engaged in traditional budgeting but willing to switch over to other types of budgeting. The purposes of budgeting One of the functions of management is â€Å"planning†. Budgeting is a part and form of planning necessitated by resource constraints. It has been defined as the formal expression of plans, goals, and objectives a management is committed to, concerning all aspects of operations in a business for a given period of time. It is a part of profit planning mechanism based on forecasting and probabilities according to the manager’s best judgement. Budgeting is more often found to be useful in making a business more profitable (Shim, Siegel, & Shim, 2011). Thus, budgeting helps estimate resources in terms of monetary value needed for business activities. Budgeting process forces one to rigorous thinking and the realities of the process will also force one to rethink the plans. Budgeting helps in determining the timing of the requirements. The business is able to monitor its income and expenditure and identify problems if any. It is the basis for accountability of managers and provides transparency. Without the budget, funds cannot be raised from financiers (Shapiro, 2001). Conventional budgeting Called traditional budgeting, it is based on the historical accounting though for the first year the figures are only estimates. Past expenditures are taken as bench marks for future performance. Thus, the budget turns out as list of planned expenditure and incomes. These budgets calculate estimated sales through market demand or production capacity and arrive at estimated revenues. It main purpose is to verify whether actual results are as per the estimates made for each cost or responsibility centre. Thus, budgeting s erves as a management tool for the purpose of controlling the responsibility centres. It also helps to have an overview of how different responsibility centres are interrelated. This type of budgeting can be useful for producer dominated markets such as those existed during the period immediately after world war II when demand for products was high with limited competition (Rohm, 2007). Types of budgets Unlike traditional budgeting which is function oriented, activity based budgeting (ABB) focuses on activity. It looks at the budgeted cost of activities that are required for manufacture and sale of products or for providing services. The activity based budgeting is directly linked to cost management as a part of planning and control. As in traditional budgeting, ABB starts with the forecasting of demand for the company’s products or services known as sales budget. Where as in functional budgeting, company proceeds to make inventory budget, material purchases and the cost of g oods sold budget, ABB considers the demand for output of each activity determined by its cost driver. Rate of consumption of resources for each activity is used for estimating or budgeting the needed resources. In functional budgeting, resources required are directly measured with the use of sales forecasted. In ABB, sales forecasts are employed to measure the activities which then enable determination of resource requirement. This way a company is able control waste and efficiency which is the ultimate goal of budgeting. Application of activity based costing helps preparation of master budget in a more practical manner. In effect, ABB applies the ABC model which assigns resource costs to activities and allocates activity costs to produce products and services (Shim, Siegel, & Shim, 2011). Zero Based

Psychology Essay Example | Topics and Well Written Essays - 1000 words - 13

Psychology - Essay Example From among the known brain functions, this paper chooses to discuss memory and how it can be improved through the reading of newspapers. Unlike the other sources of news and information that are used at intervals, newspaper reading is a daily activity and thus expected to work better in enhancing memory, which some psychologists say can be done through frequent repetition (Anderson, 1976). Three distinct types of memory are set in the psychology literature: sensory, short-term and long-term memory. Memory is considered sensory when people see more than they can actually report (Baddeley, 2000), suggesting that information is received through the senses and emotions rather than through the brain. Consequently, it involves a memory span of only a few hundred milliseconds and a capacity of only about 12 items (Anderson, 1976). As such, this type of memory degrades quickly. There is a similar limitation in capacity for short-term memory although the duration extends up to a minute. As for long-term memory, it can store much larger quantities of information for prolonged periods of time, sometimes even for a whole life span. This type of memory can either be declarative or procedural, which differ in the way the mind processes information. It is declarative when, like sensory memory, information is received based on sensations, emotions and personal associations regarding time or place, while it is procedural when memory functions well because of repetition (Snowden, 2001). Whatever the types of memory people are prone to, many studies show that memory functions can be improved through rehearsal and repetition. This means that people with sensory and short-term memory can store information for long-term purposes if they receive it repeatedly and they are forced to retrieve the information for daily use (Baddeley, 2000). Not all psychologists share this view,

Public Administration Case Study Example | Topics and Well Written Essays - 500 words

Public Administration - Case Study Example The experiment showed that limiting members of each crew would be more efficient and less costly. The replacement would involve the use of more advanced equipment that would require less of human labor. The most important information that helped a great deal during the whole procedure was the use of number of residents representing the city. It helped to identify all aspects of the city and the character of garbage deposition throughout the city. It gave a clear picture that is important in predicting and planning for the city. Another important aspect is the use of time and population as the basic data unit. During the experiment, certain assumptions made lead to its success. The garbage cans used are of average capacity from each home. Therefore, the amount of garbage is of the same capacity from each home. Another assumption is the residents willingly cooperating with the staff and following every instruction as required. Methods of analysis used to evaluate the methods were the same in all scenarios. The study used tables to represent and analyze the data collected. The study considered the total average weight collected in five days, time taken to access seven hundred and thirty units in the street, time taken to access five hundred and sixty five units in the alley, labor costs and price of equipment. The next step is conversion of the data to the total city population to give the overall picture. In the method one and two, were not effective as it was prone to a lot of time wasted. The methods could not allow for maximum garbage collection. Although method three and four were quite efficient, the cost of maintenance of the modified rear-loading packer would cost the town a lot. Method 5 proved to be very efficient and economical. The side-loaded vehicle eased the work and it improved every individual’s responsibility in garbage collection. The cost of modification and purchase the trucks in method 4 in a spurn of 20 years is

The Themes of the Body and Physical Experience Characterise Classic Essay

The Themes of the Body and Physical Experience Characterise Classic Urban Theory - Essay Example As the report declares as the techniques became more and more refined, the labor force was divided on the basis of the knowledge and skill individuals were able to acquire. The faster they adapted to the changing conditions, the better the pay they received. â€Å"The nineteenth century demanded the functional specialization of man and his work; this specialization makes one individual incomparable to another †¦, however, this specialization makes each man the more directly dependent upon the supplementary activities of all others†. This paper discusses that the influx of the factory enabled corporate heads to enact surveillance strategies, if for no other reason than to negotiate pay with workers or to keep track of wages earned. This surveillance further served to dictate the impersonal ordering of the clock into working hours and off-time hours, creating a means by which individuals could only identify themselves with part of a crowd rather than a subjective being. This led to feelings of alienation as the individual perceived themselves as different from, yet the same as, their co-workers on the factory floor, yet had no room in which to explore or express this difference. Explorations of art, literature and science into this mechanized realm produced the idea of the phantasmagorical. Phantasmagorical is characterized by fantastic imagery and incongruous juxtapositions. J.C. Powys defines it as the â€Å"incongruous imagery in surreal art and literature†.

The causes of world war I Research Paper Example | Topics and Well Written Essays - 2500 words

The causes of world war I - Research Paper Example World War 1 was by caused the diplomatic clashes that occurred between some of the great powers from countries such as Italy, the Austro Hungarian Empire, Germany and the British Empire. These countries clashed over some European and colonial issues causing high tension. The diplomatic clashes might have resulted in a change to power balance in Europe. One source of dispute was over the Balkans territory. This tension was caused by the competition between Austria Hungary, Serbia and Russia over the territory. There are many events that are thought to have triggered the war, which include national politics, assassination, economics and cultures, complex webs of alliances and counterbalances, which were developed with some of the European powers in the year 1870. There are some domestic political factors that may have resulted to the war. They include such factors as German domestic politics. This involved politics between parties such as Social Democratic Party, which had a significant impact on the elections that took place in Germany in the year 1912. The government in Germany was dominated Prussian Junkers; they were the Prussian landowning gentry, who controlled Prussia. This led to increased fear as a result of the rise of left wing parties. It is with such fear that Fritz Fischer thought an external war would distract the population resulting to support for the government.1 Germany might have been ambivalent about the war with the worry that if the Germans lost the war, Germany woul d have faced disastrous consequences, which include a drop of the economy and a shortage of raw materials. Another domestic factor that might have contributed to the war was French domestic politics. The loss of the Alsace-Lorraine resulted to increased anger among the French. France being compelled to pay large reparation to Germany in the year 1870 was seen as a source of humiliation in

Business law Research Paper Example | Topics and Well Written Essays - 750 words

Business law - Research Paper Example California State, the major employment legal tussles the business organizations are facing is the definition of workers and validity of non-competition agreement. The labor law of California has two definitions of workers as either independent contractor or employee under labor code 2750.5 (Californi Law, 2013). Similarly, labor laws define the circumstances under which a business organization can draw a non-competition agreement under labor code 16601 of the California labor law. Cases One of the cases filed by involves how workers are classified as independent contractors or employees (Narayan v. EGL, Inc., 2007). EGL which is a transportation company has been sued by three of it truck drivers for failing to offer employees benefits as required by the California labor code. The truck drivers had signed an agreement with the company to indicate that they are independent contractors. Despite this agreement, they sued EGL for failing to offer them benefits enjoyed by employees under l abor code 2802(a) (California Law, 2013). The appeal court of California held that there were facts to show the truck drivers were employees rather than independent contractors as EGL firm claimed. Consequently, the drivers were entitled to employees benefits provided under the California labor code. ... Creteguard, Inc, 2010). Silguero as a sales representative of Floor Seal Technology (FST) agreed to undertake a non-compete agreement for fear of been sacked by the employer. However, FST terminated his work after two months that forced him to seek employment in Creteguard firm. Consequently, Creteguard terminated his job after it was informed by FST of the existence of non-compete agreement with Silguero. Accordingly, the California court of appeal dismissed the validity of non-compete agreement under the California labor law. Rationale The findings of the two courts are informed by various critical reasons on the liberties of the employees as provided under the labor laws of California. In Narayan vs. EGL Company, the judges evaluated the supervision level the truck drivers were receiving from the company in undertaking their duties. To the extent that the drivers were distributing the firm’s products under the direction and supervision of the firm’s management, it wa s a clear indication they were under the employment supervision like other ordinary employees of the firm. The denial by the firm to grant them full autonomy in scheduling their distribution routes and strategies negated the very requirement of an independent agreement. Consequently, the truck drivers are entitled to receive with full employment benefits provided under labor code 2802(a) of the California labor laws. Similarly, the judgment the judges of appeal court of California made on Silguero vs. Creteguard firm is informed by legal observation. Even though the California business and profession code under section 16601 provides for non-compete agreements, it can only apply in owners of a partnership, limited companies and corporations. Indeed, the

Write an essay outlining the strategic business objectives of an

Write an outlining the strategic business objectives of an information system, including a description of its management, organisation and technology components. Make use of diagrams where appropriate - Essay Example This paper focuses on the objectives played by information systems in an organization. It will also look into the management, business and technology components of the information systems. To begin, information systems refer to ‘the set of interrelated components that collect, process, store, and distribute information to support decision making, coordination and control in an organization.’ In addition to this information systems help in the analysis and solving of problems and; come up with products that are new in the markets (Laudon, and Jane, p12). Information systems have roles that they do play in organizations. ‘The network revolution and the internet’ is one of these roles. Over the years, there have been numerous developments in information systems. For instance, there are available software that are very easy to use, people can now analyse huge amounts of data and in an easy way (Beynon-Davies-Robert, & Chris, p134). These two features and many more, enable communication networks to be very powerful due to the computer technology. The internet is one of these communication networks, which is very vital for any company, regardless its size. The internet can connect numerous countries and is a platform for people in different fields to exchange information. Companies are able to use the internet to make business transactions, graphical presentations, documents, among other things. This happens very easily despite the distance between the different parties. The internet has different importance to any company. Collaboration and information is one of these roles. Whereby, people in an organization can easily communicate by the exchange of emails, or even transmitting documents, as reports. The internet can also be used to access information. For example, during a research; or when one requires certain information, they can look for related documents, or even read books online. In addition to