StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Budget Planning and Putting Learning into Practice - Assignment Example

Cite this document
Summary
It represents a plan for the future expressed in formal quantitative terms” (Garrison, Noreen, & Brewer, 2009, p. 378). As a plan, it…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Budget Planning and Putting Learning into Practice
Read Text Preview

Extract of sample "Budget Planning and Putting Learning into Practice"

Budget Planning and Putting Learning into Practice Budget Planning and Putting Learning into Practice A. Being significantly under budget is as bad as being over budget; we need to come in exactly as planned. First of all, a budget is defined as “a detailed plan for acquiring and using financial and other resources over a specified period of time. It represents a plan for the future expressed in formal quantitative terms” (Garrison, Noreen, & Brewer, 2009, p. 378). As a plan, it could never be assumed that the figures contained therein would be accurate.

Therefore, decision-makers and reviewers of financial statements use these budgets as standards or benchmarks to determine if there are significant changes in some of the factors that are incorporated in making these financial data. Being significantly under or over budget means that there are significant changes in some factors that were not foreseen or anticipated at the time these budgets were made. The information therefore does not necessarily mean that the organization need to come in exactly as planned because at the onset, it is understood that these are just benchmarks for planned performance.

As emphasized, “preoccupation with the dollars and cents in the budget, or being rigid and inflexible, is usually counterproductive” (Garrison, Noreen, & Brewer, 2009, p. 383).For example, if the budget for sales for the year 2013 was stated as $5,000,000; significantly under budget means arriving at actual sales figure of just $2,000,000 and the organization should verify the causes of this variance.B. How will this learning of putting what one learned into practice as a manager make you more productive in the workplace?

Applying what one learned from the theories and concepts of managerial accounting would assist in making one more productive in the work place through the provision of direction and guidance in principles and techniques that have been tested to be the best practices through time. As emphasized, managerial accounting assists managers through the performance of three vital activities: planning, controlling, and decision making (Garrison, Noreen, & Brewer, 2009). Through strategies and techniques in undertaking these relevant functions, managers are able to make responsible and effective decisions after the use of analytical decision-making tools, which are learned through managerial accounting.

For example, in learning the concepts on planning, the manager would be made aware of taking into account purchasing for raw materials, where the costs of which are projected to increase by as much as 30% for the coming year. Therefore, through planning, the manager could purchase appropriate volumes of these raw materials to avail of its low prices before the new and increased price would be implemented. In doing so, revenues and profits are maximized as costs are minimized. The effective performance of a manager’s role and responsibilities within the organizational setting thereby depends on the manager’s ability to achieve identified organizational goals (Martires & Fule, 2004).

Thus, through the concepts learned, as well as their clear applications in the work setting, managers become more adept at maximizing revenues, minimizing costs, and ensuring that profits are optimized using the current resources at hand.ReferencesGarrison, R., Noreen, E., & Brewer, P. (2009). Managerial Accounting. Tata McGraw-Hill Education.Martires, C.R. & Fule, G.S. (2004). Management of Human Behavior in Organizations. National Bookstore.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Budget Planning and Putting Learning into Practice Assignment”, n.d.)
Budget Planning and Putting Learning into Practice Assignment. Retrieved from https://studentshare.org/finance-accounting/1601505-budget-planning-and-putting-learning-into-practice
(Budget Planning and Putting Learning into Practice Assignment)
Budget Planning and Putting Learning into Practice Assignment. https://studentshare.org/finance-accounting/1601505-budget-planning-and-putting-learning-into-practice.
“Budget Planning and Putting Learning into Practice Assignment”, n.d. https://studentshare.org/finance-accounting/1601505-budget-planning-and-putting-learning-into-practice.
  • Cited: 0 times

CHECK THESE SAMPLES OF Budget Planning and Putting Learning into Practice

Purpose and Importance of Budgeting an Organization

A budget is thus a coordinated plan of the operations and the resources available to an organisation represented monetarily for a specific period of time (Shim and Siegel 2008).... A budget is a very important to an organisation since it provides a clear and measurable statement of expectations, improves communication and coordination in an organisation and provides a basis on which evaluation is done and control is exercised.... Budgeting report illustrates whether resources were obtained and used in accordance with the budget....
17 Pages (4250 words) Essay

Planning And Control Of Budgets

The essay "planning and Control Of Budgets" detailed discusses the above statement and makes the conclusion whether the writer agrees with the statement or not.... Some management accountants argue that budgets are great for planning, but not for control.... On the other hand, planning comes after the step of determining budgets.... planning is strategy how to serve the budgetary objectives.... A budget is defined as a quantitative statement, which comprises for a defined period of time....
12 Pages (3000 words) Essay

Human Behavior in Budgeting

8 Pages (2000 words) Essay

Ethics Challenge and Communicating in Practice

This essay "Ethics Challenge and Communicating in practice" represents a brief summary of the main budgetary principles and issues in accounting.... Divergent views on budget-making process obfuscate budget-making process through ethical and communication in practice issues.... Adverse budget situations sometimes require unraveling for the budget to deliver on its broad mandate of keeping the organization strategically alert....
6 Pages (1500 words) Essay

The Budget Is a Tool of Repression Rather Than Innovation by Hope and Fraser

Budgets have been used as tools for aiding the planning of actual operations by ensuring managers consider changes in their environment.... Budgeting Name Institution Budgeting The budget Is a Tool of Repression Rather Than Innovation A budget refers to a financial tool or plan that lists all planned revenues and expenses.... A budget functions as a plan for spending, borrowing, saving, and it is an essential tool for microeconomics....
8 Pages (2000 words) Essay

Budgetary Control and Performance Management

One such… ement accounting practice is budgeting and budgetary control that is increasingly being adopted by organizations throughout the world with the underlying aim of managing performance.... The practice of budgetary control has the potential to create several ways of social and organizational functioning and this practice often goes through certain modifications in response to changes in organizational form and society (Hopwood, 1994)....
7 Pages (1750 words) Assignment

Purpose and Importance of Budgeting to an Organisation

Careful planning is paramount in enabling a company to operate at a fixed cost.... The paper "Purpose and Importance of Budgeting to an Organisation" highlights that the budget is critical in the fluid functioning of an organisation as the resources are never limitless.... A budget is thus a coordinated plan of the operations and the resources available to an organisation represented monetarily for a specific period of time (Shim and Siegel 2008)....
20 Pages (5000 words) Coursework

Forecasted and Budgeted Performance of Synovate FZ-LLC

The research analyzed forecasted and budgeted performance of Synovate FZ-LLC.... nbsp; Synovate FZ-LLC is a market research consultancy in Dubai.... It is a free zone company registered with limited liability pursuant to regulations issued by Dubai Government and Media Free Zone Private Regulations, 2003....
15 Pages (3750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us