Budgeting and Forecasting 278 Midterm 2014 (TCO 1) The type of budget that is updated on a regular basis is known as a _____. Student Answer: continuous budget revised budget updated budget flexible budget TCO 2) The quantitative forecasting method that uses actual sales from recent time periods to predict future sales‚ assuming each period has equal influence on the prediction of future sales‚ is the _____. Student Answer: moving average model weighted moving average
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What are the primary strengths and weakness of the current system? How should the performance of such a system be evaluated? The capital budgeting system at Stryker Corporation made use of formalized CER forms by which individual divisions within Stryker documented the goals for revenue‚ operating profit and cash flow across in a way that were deliverable and consistent with global corporate targets. The CER system is a rigorous one requiring thorough documentation before the divisions obtain
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budget accompanies may choose to adopt either top down budgeting approach or bottom up budgeting approach. In the finance ministry bottom down budgeting was a traditional way used in budget formulation. Top down budgeting came in the 1990s as a motivation to curb the fiscal deficits in which it lead to fiscal crisis in other countries. Top down budgeting was found that it helps and manages well the fiscal deficit efficiently unlike bottom up budgeting approach. Countries like Denmark‚ Korea Sweden‚ Australia
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Hittle Company Ltd (Case Study) You are a financial analyst for the Hittle Company. The director of capital budgeting has asked you to analyze two proposed capital investments‚ project X and Y. Each project has a cost of $10000 and the cost of capital for each project is 12 percent. The projects expected net cash flows are as follows: |Expected Cash flows | | | | | |year
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Corporate Budget i n g Is Broken Let’s Fix It Traditional budgeting processes waste time‚ distort decisions‚ and turn honeSt managers into It doesn’t have to be that wayif you’re willing to the ties between and compensation by Michael C.Jensen NOVEMBER 2001 95 Corporate Budgeting Is Broken - Let’s Fix It C ORPORATE BUDGETING IS A JOKE‚ and everyone knows it. It consumes a huge amount of executives’ time‚ forcing them into endless rounds of dull meetings and tense
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trains as it pertains to evaluating capital budgeting. Based on the video abstract‚ this paper will identify possible pitfalls‚ which may affect the business performance of the George’s Trains. Furthermore‚ this paper will deliver a statement of cash flow based on certain assumptions and performance trends of George’s Trains. It will recommend areas of improvement to endure success. Lastly‚ this paper provides conclusion on the overall capital budgeting analysis of George ’s Trains.
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1- On December 31 of the current year‚ Hewett Company reported an ending inventory balance of $215‚000. The following additional information is also available: • Hewett sold goods costing $38‚000 to Trump Enterprises on December 28 and shipped the goods on that date with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215‚000 because they were not in Hewett ’s warehouse. • Hewett purchased goods costing $44‚000 on December 29. The goods were shipped
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CHAPTER 17 Capital Budgeting for the Multinational Corporation EASY (definitional) 17.1 The _______ is defined as the present value of future cash flows discounted at the project’s cost of capital minus the initial net cash outlay for the project. a) net present value b) equity-adjusted present value c) cost of capital d) value additive principle Ans: a Section: Net present value Level: Easy 17.2 The most desirable property of the NPV criterion is that it evaluates a) investments
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Submission Date: February 05‚ 2010 INTERACTIVE INTERVIEW/SESSION: MANAGING TRAVEL EXPENSES QUES 1: What kinds of systems are described here? What valuable information do they provide for employees and managers? What decisions do they support? Answer: Firstly‚ Transaction Processing Systems are in place. The system is seen as keeping track of elementary activities and transaction such as inputting of the expense data via a web interface from whether they are working with a computer‚ telephone‚
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Question 1c In order to create the criteria for the committee we have to look at what they want from the project. Most businesses and organisations are in business to make a profit‚ however the committee has different aims and objectives compared to a normal business or organisation. They need to weight up the options of each proposal and decide which best relates to their aims and objectives. When the committee is considering which proposal to go with they should consider the following categories
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