BUDGETING AND BUDGETARY CONTROL . Budget A plan quantified in monetary terms and approved prior to a defined period of time‚ usually showing planned income to be generated and for expenditure to be incurred during that period‚ to attain a given objective. The preparation of budgets is not something that can be carried out by accountants alone. It requires the participation of many managers and other personnel to ensure that the plans for the forthcoming period are translated
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LECTURE 9 CAPITAL BUDGETING CLASS QUESTION (The information below is for question 1 & 2) Toya Motors needs a new machine for production of its 2005 models. The financial vice president has appointed you to do the capital budgeting analysis. You have identified two different machines that are capable of performing the job. You have completed the cash flow analysis‚ and the expected net cash flows are as follows: Expected Net Cash Flow Year Machine B Machine O 0 ($5‚000) ($5‚000) 1 2‚085
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“A Change to Remember” When I was just a kid‚ I really wondered what explanation of science holds with regards the creation of humans. I have been searching for answers from websites‚ textbooks‚ teachers but they only answer be the different evolutions and not the précised details of it. I even asked a priest about it and he started to disregard my point about the evolution of humans. You can’t blame an 8 year old kid who is searching for the right and justified answer to it. Another dilemma that
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| Goodweek Tires‚ Inc. | A Case Study | | | | | Table of Contents: * Case Overview * Project Information * Capital Budgeting Analytical Measures * Forecasted Sales Numbers * Depreciation Schedule * Investment Cash Flows * Recommendation & Conclusion GOODWEEK TIRES INC. Case Overview Goodweek Tires‚ Inc. recently developed a new tire‚ SuperTread. This tire was meant to be ideal for drivers who do a lot of wet weather‚ off-roading‚ and normal freeway driving
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implementation is feasible and can bring maximum benefits to the company FEASIBLE ANALYSIS CAPITAL BUDGETING ANALYSIS FEASIBLE ANALYSIS (Yusof‚ 2009) FEASIBLE ANALYSIS (Yusof‚ 2009) CAPITAL BUDGETING ANALYSIS • It is a process of planning for purchases of long-term assets • It will identify the cash inflows and cash outflows rather than revenues and expenses flowing from the investment • Capital budgeting analysis
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Behavioral Aspects of Budgeting The technical process for setting a budget emphasizes the need for involvement at all stages of the process. In an ideal world that would produce the best solution. However‚ the world is not ideal and not everyone can be allowed to do exactly as he or she would wish at the first instance. So potential conflicts arise and those involved in the budgetary process need to be aware of the behavioral aspects in order to maximize the good points and minimize the problems
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This case provides insight into how capital budgeting decisions are made and the factors that influence the decision making process of large corporations. Specifically‚ the case centers on the capital expenditure meeting for the Target Corporation‚ which is one of the top ten retailers in the United States. All corporations have some version of this meeting. The goal of the meeting is to determine what capital expenditure projects the company will undertake in the future to promote growth. Below
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addition‚ the remaining 15 to 20 percent of these funds are impacted by educational mandates at the federal‚ state‚ and local levels (Ellerson‚ 2010). Therefore‚ educational leaders are experiencing an increase in the importance of intentional budgeting that improves instruction and promotes student achievement. The federal‚ state‚ and local levels of government are all involved in the school budget. The United States Department of Education and Congress manage federal education funding and policy
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CAPITAL BUDGETING PROBLEM BMW Bike is considering building a new plant. Juan Optimist‚ the company’s marketing manager‚ is an enthusiastic supporter of the new plant. Mila Pessimist‚ the company’s chief financial officer‚ is not so sure that the plant is a good idea. Currently the company purchases its skateboards from foreign manufacturers. The following figures were estimated regarding the construction of a new plant. Cost of plant 4‚000‚000 Annual cash inflows 4‚000‚000 Annual cash
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IEE04 : Project management Feb 2013 A. Explain the following four major components of cost of project…………. aug12‚feb12 1. Material Cost 2. Utilities cost 3. Labor cost 4.Factory overhead cost Ans: 1. Material Cost: the most important element of cost‚ the material cost comprises of the cost f raw material‚ chemical‚ components and consumable stores required for production. It is a function of the quantities in which these materials are required and the prices payable for them. While estimating the
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