The relevance of budgets when it comes to the management of organizational operations cannot be overstated. In this text, I discuss the various types of budgets. In so doing, I will make use of a hypothetical company by the name ABC Industries — a Texas-based manufacturing entity. ABC produces blankets.
Types of Budgets
Budgets can be classified in numerous ways. The classification approach I adopt in this case is largely founded on the nature of an organization and its unique needs. To begin with, budgets can be classified on the basis of production flexibility. Under this classification, budgets could either be fixed or flexible. A fixed budget in the words of DuBrin (2011) “allocates expenditures based on a one-time allocation of resources.” On the other hand, a flexible budget according to the author “allows for variation in the use of resources on the basis of activity” (DuBrin, 2011).
Budgets can also be classified on the basis of coverage or function, i.e. financial budget or operating budget. As Hansen, Mowen, and Guan (2009) point out, operating budgets focus on a firm’s income generating activities. Such activities include purchasing, production, sales, etc. When it comes to financial budgets, the focus is on cash inflows/receipts and outflows/disbursements (Hansen, Mowen, and Guan, 2009). Budgets of this nature are also concerned with not only the financial position but also the results of an entity’s operations.
Next, budgets could also be short-term or long-term. This classification seeks to classify budgets on the basis of period. Whereas long-term budgets are prepared to cover longer periods of time, i.e. more than one year; short-term budgets seek to cover a shorter period of time, i.e. A quarter of a year. According to Crosson and Needles (2010), an organization’s information needs are the primary determinants of the budget period to be adopted. Examples of long-term budgets in this case include but they are not limited to capital expenditure budgets, etc. On the other hand, cash budgets could be prepared to cover a period of less than one financial year.
The Best Type of Budget for my Selected Company
As I have already pointed out in the introductory section, ABC Industries is a manufacturing entity. In that regard, the type of budget I make use of in this case must be best suited for an entity of its kind. For that reason, I settle for function or coverage-based budget. Here, the two kinds of budgets to be prepared are financial and operating budgets as highlighted by Crosson and Needles. Assuming that ABC Industries has an income of 1 million per year, I will in this case be required to first develop an operating budget and then a financial budget. One of the key components ABC’s operating budget will be the sales budget. In this case, I will make use of a sales forecasting technique commonly referred to as “bottom-up.” Here, sales figures that will be aggregated to form the sales forecast will be solicited from the people in the field. The development of the sales budget will be followed by the creation of a production budget. This will tell me how many blankets we need to produce during the budgeting period. Afterwards, I will develop direct materials purchases, direct labor, and overhead budgets. To be able to compute our product’s per unit cost, I will be required to come up with an ending finished goods inventory budget. The last two steps before I have all the information I require to develop a budgeted income statement are the creation of a C.O.G.S budget and a selling and administrative expenses budget. After developing the financial budget, I will be able to arrive at the net profit figure.
Type of Calendar to Be Selected
The budget cycle of ABC Industries will be set for 12 months. This will then be broken down into quarters so as to minimize errors associated with an extended budgetary period. The time period I settle for above makes this a fiscal-year budget.
In addition to helping in the monitoring and control of operations, budgets come in handy in the appropriate allocation of resources within an organization. For this reason, they remain highly relevant in managerial accounting. A well-composed budget will be of great use to the top executives of ABC Industries in their planning, forecasting, and review activities.
Crosson, S. & Needles, B.E. (2010). Managerial Accounting (11th ed.). Mason, OH: Cengage Learning.
DuBrin, A.J. (2011). Essentials of Management (9th ed.). Mason, OH: Cengage Learning.
Hansen, D.R., Mowen, M.M. & Guan, L. (2009). Cost Management: Accounting and Control (6th ed.). Mason, OH: Cengage Learning.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!