Explain the concept of “master budget” and critically discuss its benefits to an organization.
Q: Why is the sales budget considered the cornerstone of the master budget?
A: Master budget is the sum total of all lower level budgets of the organisation various functions like…
Q: Which provides the most benefit to an organization, a budget or the budgeting process? Why?
A: Budget: A budget is a systematic allocation of resources to different departments depending on the…
Q: Budgets, Fixed Budgets and Flexible Budgets
A: Fixed Budgeting:The leased Institute of Management Accountants (UK) defines a hard and fast budget…
Q: What motivates PFG to install a budgeting and planning system?
A: Planning and Budgeting is an analytical application that helps to set top-down targets and generate…
Q: Discuss why budgets are so important for all organizations. Describe some advantages and…
A: Budgets are an indispensable part of business organizations because they assist business…
Q: When an organization involves its many employees in the budgeting process in a meaningful way, the…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: 1.) Why is it necessary to determine and confirm scope and nature of budgetary planning activity…
A: answer It is necessary to determine and confirm scope and nature of budgetary planning activity with…
Q: Help me explain in tagalog or english A budget plan is essential to the realization of the plans of…
A: Budget Plan Budget plan is important to the organisation to estimate the total expenditure and…
Q: What are the benefits of budgeting?
A: Budgeting is the process of designing, implementing, and operating budgets. It is the managerial…
Q: Explain what you understand by Budgets, Fixed budgets and Flexible budgets in the context of control…
A: Organizations produce budgets for a variety of purposes, including cost control, performance…
Q: According to institute of Cost and Management Accountants (ICMA) a budget is a plan, quantified in…
A: Budgets are quantitative plans which are used for allocation of resources, comparing and controlling…
Q: Budgets are an effective device to communicate
A: Budget represents the report that contains the objective of the corporation and the way how to get…
Q: Explain what you understand by Budgets, Fixed Budgets and Flexible Budgets in the context of control…
A: Companies prepare budgets for various reasons such as controlling costs, evaluating performance, or…
Q: master budget include
A: Master budget is a set of budgets of various activities in an entity.
Q: Determine the budget for the department assuming that it uses flexible budgeting.
A: Direct labor cost per hour of production = Budgeted direct labor cost/ Budgeted production hours =…
Q: [2] In the budgeting and planning process for a firm, which one of the following should be completed…
A: SOLUTION- STRATEGIC PLANNING IS A PROCESS IN WHICH ORGANIZATIONAL LEADERS DETERMINE THEIR VISION FOR…
Q: Explain budgetary reporting requirements.
A:
Q: The budgeted balance sheet is part of which element of the master budget?
A: The Answer
Q: Construct a material usage and purchases budget of the Bara Enterprise.
A: A material usage and purchases budget is a statement of estimation of a material required to produce…
Q: How are standards used by management in evaluating organizational units, as to their budgetary…
A: A budget refers to the financial plan that is used by managers in order to estimate revenues and…
Q: explain the advantages and limitations of budgetary control in detail
A: Budgetary control is the process of preparing budgets for the future time and comparing them to…
Q: Sales are often considered to be the principal budget factor of an organisation. Explain the meaning…
A: Sales budget presents the expected sales volume and sales value for the coming period.
Q: Budgets are an effective device to communicate objectives constraints expectation to personnel all…
A: Budgets - Budget is the statement prepared including all the revenues and expenses over a year…
Q: Explain the role of budget in management cycle.
A: Management: It is an art of getting things done by others. The others include the employees of…
Q: what is contemporary organization and would you recommend budgeting for contemporary organisations…
A: Contemporary organization It is a type of organizational structure that is fluid and it is easy to…
Q: _______ can be defined as compelling events to go according to plan. A. Budgeting B. Management…
A: Compelling events are events that forces to take some decision.
Q: Discuss how are budgets used to help organizations plan for future and how are budgets used for…
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Explain the specific roles of planning, motivation, communication, evaluation and control in a…
A: Budgetary control is an exercise undertaken by the organization/entity to ensure that the period…
Q: Evaluate how a typical budgetary process is undertaken in a business organisation.
A: Budgetary procedure refers to the means through which the branches of executive and legislative…
Q: s the uses and adv
A: Answer 1) Budget: Estimation of income and expenses of a Corporation for a particular set of…
Q: what is another name for tactical planing a) Budgetary planing b) operation planing c)…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Discuss any three advantages of budgeting? The subject is Managerial Accounting.
A: Budgeting:-It is a process of creating a plan for how to spend money. This spending plan is called…
Q: plain the financial aspects of planning and costing as embe
A: Budget : It is an expression of an organisation's plan, policies and programmes in the form of…
Q: Explain the components of master budget.
A: Master Budget: A master budget is defined as an aggregation of all the lower-level budgets that…
Q: Activity-based budgeting is a budget system based on expected activities. Describe activity-based…
A: Activity Based Budgeting is a system of budgeting that records , researches , analyzes and interpret…
Q: Describethe best practices you would implement when budgeting for an organization.
A: Budgeting is the management regular process in an organization to determine the future outcomes, and…
Q: Briefly discuss the budgeting process and explane how the budgeting process satisfies the purpose…
A: Budgeting process: The process of streamlining the future expenditure process by predicting or…
Q: a.Identify the budget preparation approach used
A: An Estimate is the process of calculation or judgement of the value, number, quantity.It is a kind…
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Explain the concept of “
master budget ” and critically discuss its benefits to an organization.
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- Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year's sales P200,000 Sales growth rate 40% Last year's current assets 65,000 Last year's noncurrent assets 70,000 Last year's profit margin 20.0% L last year's accounts payable P50,000 Last year's notes payable P25,000 Last year's accruals P20,000 Target plowback ratio 75.0% choices: -44,000 -50,000 -54,000 -16,000 -40,000 Jonson, Inc. is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the retention ratio from 90% that was used in the past to 50%, which the firm's investment bankers have recommended. Seventy-five percent of the total assets are considered…“We really need to get this new material – handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short term loan down at Metro bank”. Maria Wilcox, Global Electronics general manager of marketing has recently completed a sales forecast. She believes the company’s sales during the first quarter of 2021 will increase by 10% each month over the previous month s’ sales. Than Wilcox expects sales to remain constant for several months. Global ‘s projected balance sheet as of Dec 31 2020 is as follow: Cash 70,000 A/c receivable 540,000 Marketable securities 30,000 Inventory…Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales - So Sales growth rate-g Last year's total assets - Ag* Last year's profit margin-PM Select the correct answer. O a $80.9 b.186.9 O c. $77.9 O d. $83.9 Oe. $92.9 $350 30% $390 5% Last year's accounts payable Last year's notes payable Last year's accruals Target payout ratio $40 $50 $30 60%
- CVP Analysis; Strategy; Critical Success Factors Garner Strategy Institute (GSI) presentsexecutive-level training seminars nationally. Eastern University (EU) has approached GSI to present40 one-week seminars during 2019. This activity level represents the maximum number of seminarsthat GSI is capable of presenting annually. GSI staff would present the week-long seminars in variouscities throughout the United States and Canada.Terry Garner, GSI’s president, is evaluating three financial options for the revenues from Eastern:accept a flat fee for each seminar, receive a percentage of Eastern’s profit before tax from the seminars, and form a joint venture to share costs and profits.Estimated costs for the 2019 seminar schedule follow:Garner Strategy Institute Eastern UniversityFixed costs for the year:Salaries and benefits $200,000 N/A*Facilities 48,000 N/A*Travel and hotel 0 $210,000Other 70,000 N/A* Total fixed costs $318,000 $210,000Variable cost per participant:Supplies and materials…The CEO of Harlem Hardware Supplies has submitted together a capital budget of $48,500,000 for the following year’s investment opportunities. He expects to have $19,000,000 in retained earnings at the end of the year. Harlem’s target capital structure calls for 45 percent equity. Based on these figures, will Harlem be able to meet their capital budget needs with retained earnings? Use these data to calculate Harlem's retained earnings break point (REBP). Calculate the figure to the nearest dollarDaniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last year's accounts payable $40 Sales growth rate = g 30% Last year's notes payable $50 Last year's total assets = A0* $780 Last year's accruals $30 Last year's profit margin = PM 5% Target payout ratio 60%
- USING JOHNSON AND JOHNSON AS THE COMPANY..... Create the sales growth forecast based on the past 5-10 years, which should use multiple methods, such as arithmetic, geometric, regression methods. Excel forms should be used so that it's clear for everyone to see the work." Johnson & Johnson Annual Revenue(Millions of US $) 2023 $85,159 2022 $79,990 2021 $78,740 2020 $82,584 2019 $82,059 2018 $81,581 2017 $76,450 2016 $71,890 2015 $70,074 2014 $74,331 2013 $71,312 2012 $67,224Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last year's accounts payable $40 Sales growth rate = g 30% Last year's notes payable $50 Last year's total assets = A0* $740 Last year's accruals $30 Last year's profit margin = PM 5% Target payout ratio 60% Select the correct answer. a. $199.9 b. $187.9 c. $195.9 d. $191.9 e. $203.9Suppose a firm has had the following historic sales figures. What would be the forecast for next year's sales using the average approach? You must use the built-in Excel function to answer this question. Input area: Year Sales 2016 2017 2018 es es e $ 1,500,000 $ 1,750,000 $ 1,400,000 2019 $ 2,000,000 2020 $ 1,600,000 Output area: Next year's sales
- Towson Industries is considering an investment of $496,800 that is expected to generate returns of $150,000 per year for each of the next four years. What is the investment’s internal rate of return? https://openstax.org/books/principles-managerial-accounting/pages/time-value-of-money _________%Belfort Inc. is a production company with four investment opportunities available to its manager, Brad for the 2022 year. Below outlines these opportunities: Project Investment Annual Earnings Omega 900,000 $ 200,000 Alpha 1,500,000 $ 187,500 Epsilon $ 3,100,000 $ 350,000 Theta 600,000 $ 150,000 REQUIRED A) Brad is currently evaluated based on his Return on Investment (ROI). i) If the required rate of return is 14%, which projects would be accepted? ii) If they can only choose one project, which would they choose? B) Belfort Inc. has decided to change its investment stategy to focus on Residual Income analysis. Which project should Brad choose under these new requirements if the company requires a minimum required return of 10%? C) Donny, a manager in another investment centre, has presented Brad with a new 5 year project opportunity to replace one of the factory machines. The details of this investment are below: Cost of new machine 140,000 Useful life of the new machine 5 years…Good day! Can you please help me with this? Thank you!! Financial Forecasting SOLVE THE FOLLOWING PROBLEM: Use the percentage of sales forecasting method to compute the additional financing needed by LSS Inc., if sales are expected to increase from a current level of P 20,000,000 to a new level of Php 25,000,000 over the coming year. LSS expects earnings after taxes to equal Php 1,000,000 over the next year (2018). LSS intends to pay a Php 300,000 dividend next year. The current year balance sheet for LSS is as follows: LSS INC. Balance Sheet as of December 31, 1018 Cash 1,000,000c. Additional financing needed Accounts Payable 3,000,000Accounts Receivable 1,500,000 Notes Payable 3,000,000Inventories 6,000,000 Long term Debt 2,000,000Net Fixed Assets 3,000,000 Stockholder’s Equity 3,500,000TOTAL ASSETS 11,500,000 TOTAL LIABILITIES &EQUITY 11,500,000 All assets except “cash are expected to vary proportionately with sales. Of total liabilities and equity, only “accounts payable” is…