CHAPTER ONE 1.0 Background of the Study The success of any organization either non-profit organization or profit oriented entities is generally influenced by its planning and control mechanisms. The two concepts of planning and controlling must be balanced so as to attain success and development in an organization. At the planning stage an organization usually stipulates its objectives‚ missions‚ visions‚ goals and means of attaining those objectives with formulation of
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Meaning and Need for Budget Everyone is familiar with the idea of a budget because it is essential in every walk of our life – national‚ domestic and business. A budget is prepared to have effective utilisation of funds and for the realisation of objectives as efficiently as possible. Budgeting is a powerful tool to the management for performing its functions (i.e.‚ formulating plans‚ coordinating activities and controlling operations etc.) efficiently. CIMA London defines budget as‚ “A plan quantified
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operations to ensure that cash is available. Otherwise‚ companies may find themselves in a liquidity crisis –unable to meet payroll‚ pay suppliers‚ or pay subcontractors - which leads to bankruptcy or an operational shutdown. Importance of Cash Budget A cash budget is a projection of how your business will earn and spend money during an upcoming period. Preparing a cash budget is important because the process forces you to think about your
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Master Budget Master Budget Definition The master budget is the aggregation of all lower-level budgets produced by a company’s various functional areas‚ and also includes budgeted financial statements‚ a cash forecast‚ and a financing plan. The master budget is typically presented in either a monthly or quarterly format‚ and usually covers a company’s entire fiscal year. An explanatory text may be included with the master budget‚ which explains the company’s strategic direction‚ how the master
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1. Budgeting - An Introduction A budget is a plan that outlines an organizations financial or operational goals. It is an action plan. It helps a business allocate resources‚ evaluate performance‚ and formulate plans. Understanding the importance of budgeting is the first step in successful financial planning. This tutorial introduces budgeting and the 5 most commonly used methods of budgeting 2. Preparing & Controlling a Budget Budgeting is potentially a managers most valuable planning and
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industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector‚ NTPC is extending consultancy services to various organizations in the power business. NTPC is committed to the
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Budget Interpretation Budgets help to bring spending under control and lead the way for the development of plans that enable an organization to become or remain fiscally sound. For an organization to develop or maintain financial stability‚ it must understand the purpose of budgeting and how to apply the various budgeting techniques that will help promote and expand the business. Budgeting requires organizations to use financial projections to attract investors and secure grants or donations‚ which
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1. There are many criticisms about budget‚ but using budget can increase sales‚ decentralize and empower to lower level. According to the reading articles‚ budgetary can replace the fixed performance target with openness and transparency. And also management can give employees more freedom to manage. For example‚ Musimundo did not have budget before 2004. After 2004‚ it had established budget system. The budget was separated in two ways which were bottom-up and top-down. Employees who are at the
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Regular vs. Flexible staffing : Making use of contingent workers | Submitted by: Fatima Rauf BBA 2K8 (A) Roll no: 11 | Regular vs. Flexible Staffing: Making Use of Contingent Workers Strategic decisions need to be undertaken to see how much recruiting needs to be done to fill staffing needs with regular full time workers and other contingent temporary part time workers. This lies at the foundation of recruitment decisions. In a business climate where most organizations of various sizes
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Why Organizations Should Implement Flexible Work Hours. In today’s fast-paced competitive world‚ flexible work arrangements are a key component to ensure employee commitment. Flexible work arrangements ensure that employers have a flexible work force i.e. there is availability of sufficient labor to meet the workload at all times. Transforming practices in the work place so that it suits employee needs better‚ is extremely crucial in ensuring employee satisfaction and commitment. Flexible work hours
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