Harwood Medical Instruments Plc (Hmi)
Solutions ACCT914 Seminar 6
������ What needs to be done to produce plans and budgets? Why are plans and budgets important? ������ Explain the planning cycle.
������ What is a “good” budget target? Explain your answer. ������ MCS (Management Control Systems) Chapter
9- Financial Performance Targets
������ Explain the various types of financial performance targets outlined in chapter 9.
������ How difficult a target should be set? Why?
������ What are the advantages and disadvantages of allowing participatory budgeting? How can the disadvantages be minimised? 2
1 What are the three core elements in financial results control? Why is each element important? • Financial responsibility centres • The apportioning of accountability for financial results within the organization. • Formal management processes • Planning & budgeting to define performance expectations and standards for evaluating performance. • Motivational contracts • To define the links between results and various organisational incentives.
2 What needs to be done to produce plans and budgets? Why are plans and budgets important? • Produce written plans that specify … o Where the organisation wishes to go; o How it intends to get there; o What results should be expected. • Purposes of the planning and budgeting process? o To engage in longer-term thinking; o To achieve coordination (top-down, bottom-up, sideways); o To enhance management control; o To arrive at challenging but realistic performance targets.
3 Explain the planning cycle.
|Direction |Budget Type |Process |
| |Strategic |Relatively broad processes of thinking about the missions, goals |
| |Planning
������ What needs to be done to produce plans and budgets? Why are plans and budgets important? ������ Explain the planning cycle.
������ What is a “good” budget target? Explain your answer. ������ MCS (Management Control Systems) Chapter
9- Financial Performance Targets
������ Explain the various types of financial performance targets outlined in chapter 9.
������ How difficult a target should be set? Why?
������ What are the advantages and disadvantages of allowing participatory budgeting? How can the disadvantages be minimised? 2
1 What are the three core elements in financial results control? Why is each element important? • Financial responsibility centres • The apportioning of accountability for financial results within the organization. • Formal management processes • Planning & budgeting to define performance expectations and standards for evaluating performance. • Motivational contracts • To define the links between results and various organisational incentives.
2 What needs to be done to produce plans and budgets? Why are plans and budgets important? • Produce written plans that specify … o Where the organisation wishes to go; o How it intends to get there; o What results should be expected. • Purposes of the planning and budgeting process? o To engage in longer-term thinking; o To achieve coordination (top-down, bottom-up, sideways); o To enhance management control; o To arrive at challenging but realistic performance targets.
3 Explain the planning cycle.
|Direction |Budget Type |Process |
| |Strategic |Relatively broad processes of thinking about the missions, goals |
| |Planning