Project on Budgetary Control Essay Essay Example

Project on Budgetary Control Essay Paper 1. A budget is concerned for a definite future period. 2. A budget is a written papers. 3. A budget is a elaborate program of all the economic activities of a concern. 4. All the sections of a concern unit co-operate for the readying of a concern budget. 5. Budget is a mean to accomplish concern and it is non an terminal in itself. 6. Budget demands to be updated. corrected and controlled every clip when fortunes alterations. Therefore it is a uninterrupted procedure. 7. Budget helps in planning. coordination and control. 8. Different types of budgets are prepared by industries harmonizing to concern demands. 9. A budget acts a concern barometer. 10. Budget is normally prepared in the visible radiation of Past Experience. 11. Budget is a changeless enterprise of the Management. We will write a custom essay sample on Project on Budgetary Control Essay specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Project on Budgetary Control Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Project on Budgetary Control Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer 2 Preparation OF BUDGETS 1. Definition of aims: A budget being a program for the accomplishment of certain operational aims. it is desirable that the same are defined exactly. The aims should be written out ; the countries of control demarcated ; and points of gross and outgo to be covered by the budget stated. This will give a clear apprehension of the program and its range to all those who must collaborate to do it a success. 2. Location of the key ( or budget ) factor: There is normally one factor ( sometimes there may be more than one ) which sets a bound to the entire activity. For case. in India today sometimes non-availability of power does non let production to increase inspite of heavy demand. Similarly. deficiency of demand may restrict production. Such a factor is known as cardinal factor. For proper budgeting. it must be located and estimated decently. 3. Appointment of accountant: Formulation of a budget normally requires wholeclip services of a senior executive ; he must be assisted in this work by a Budget Committee. dwelling of all the caputs of section along with the Managing Director as the Chairman. The Controller is responsible for co-ordinating and development of budget programmes and fixing the manual of direction. known as Budget manual. The Budget manual is a agenda. papers or brochure which shows. in written forms the budgeting administration and processs. The manual should be good written and indexed so that a transcript thereof may be given to each departmental caput for counsel. 3 4. Budget period: The period covered by a budget is known as budget period. There is no general regulation regulating the choice of the budget period. In pattern the Budget Committee determines the length of the budget period suited for the concern. Normally. a calendar twelvemonth or a period coextensive with the fiscal twelvemonth is adopted. The budget period is so sub-divided into shorter periods—it may be months or quarters or such periods as coincide with period of trading activity. 5. Standard of activity or end product: For fixing budgets for the hereafter. past statistics can non be wholly relied upon. for the past normally represents a combination of good and bad factors. Therefore. though consequences of the yesteryear should be studied but these should merely be applied when there is a likeliness of similar conditions reiterating in the hereafter. Besides. while puting the marks for the hereafter. it must be remembered that in a progressive concern. the accomplishm ent of a twelvemonth must transcend those of earlier old ages. Therefore what was good in the yesteryear is merely just for the current twelvemonth. In budgeting. repairing the budget of gross revenues and of capital outgo are most of import since these budgets determine the extent of development activity. For budgeting gross revenues. one must see the tendency of economic activity of the state. reactions of salesmen. clients and employees. consequence of monetary value alterations on gross revenues. the proviso for advertizement run program capacity etc. 4 Meaning of Budgetary Control: The Chartered Institute of Management Accountants of England and Wales has defined the footings ‘budgetary control’ as â€Å"Budgetary control is the constitution of budgets associating to theduties of executives of a policy and the uninterrupted comparing of the existent with the budgeted consequences. either to secure by single action the aim of the policy or to supply a footing for its alteration. † It is the system of direction control and accounting in which all the operations are forecasted and planned in progress to the extent possible and the existent consequences compared with the forecasted and planned 1s. Budgetary Control Involves: 1. Constitution of budgets 2. Continuous comparing of actuals with budgets for accomplishment of marks 3. Revision of budgets after sing changed fortunes 4. Puting the duty for failure to accomplish the budget marks. The outstanding characteristics of Budgetary Control System are as follows: 1. Determining the aims to be achieved. over the budget period. and the policy or policies that might be adopted for the accomplishment of these terminals. 2. Determining the assortment of activities that should be undertaken for the accomplishment of the aims. 3. Pulling up a program or a strategy of operation in regard of each category of activity. in physical every bit good as pecuniary footings for the full budget period and its parts. 5 4. Puting out a system of comparing of existent public presentation by each individual. subdivision or section with the relevant budget and finding of causes for the disagreements. if any. 5. Guaranting that disciplinary action will be taken where the program is non being achieved and. if that be non possible. for the alteration of the program. In brief. it is a system to help direction in the allotment of duty and authorization. to supply it with assistance for doing. gauging and be aftering for the hereafter and to ease the analysis of the fluctuation between estimated and existent public presentation. In order that budgetary control may work efficaciously. it is necessary that the concern should develop proper footing of measuring or criterions with which to measure the efficiency of operations. i. e. . it should hold in operation a system of standard costing. Besides this. the organisation of the concern should be so incorporate that all lines of authorization and duty are laid. allocated and defined. This is indispensable since the system of budgetary control postulates separation of maps and division of duties and therefore requires that the organisation shall be planned in such a modethat everyone. from the Managing Director down to the Shop Foreman. will hold his responsibilities decently defined. Aims of Budgetary Control System: 1. Portraying with preciseness the overall purposes of the concern and finding marks of public presentation for each subdivision or section of the concern. 2. Puting down the duties of each of the executives and other forces so that everyone knows what is expected of him and how he will be judged. Budgetary control is 6 one of the few ways in which an nonsubjective appraisal of executives or section is possible. 3. Supplying a footing for the comparing of existent public presentation with the preset marks and probe of divergence. if any. of existent public presentation and disbursals from the budgeted figures. This of course helps in following disciplinary steps. 4. Guaranting the best usage of all available resources to maximise net income or production. capable to the confining factors. Since budgets can non be decently drawn up without sing all facets normally there is good co-ordination when a system of budgetary control operates. 5. Co-coordinating the assorted activities of the concern. and centralising control and yet enabling direction to deconcentrate duty and delegate authorization in the overall involvement of the concern. 6. Engendering a spirit of careful premeditation. appraisal of what is possible and an effort at it. It leads to dynamism without foolhardiness. Of class. much depends on the aims of the house and the energy of its direction. 7. Supplying a footing for alteration of current and future policies. 8. Pulling up long scope programs with a just step of truth. 9. Supplying a yardstick against which existent consequences can be compared. Working of a budgetary control system: The duty for successfully presenting and implementing a Budgetary Control System rests with the Budget Committee moving through the Budget Officer. The Budget Committee would be composed of all functional caputs and a member from the Board to 7 preside over and steer the deliberations. The chief duties of the Budget Officer are: 1. To help in the readying of the assorted budgets by organizing the work of the histories section which is usually responsible to roll up the budgets—with the relevant functional sectionslike Gross saless. Production. Plant care etc. ; 2. To send on the budget to the persons who are responsible to adhere to them. and to steer them in get the better ofing any practical troubles in its working ; 3. To fix the periodical budget studies for circulation to the persons concerned ; 4. To follow-up action to be taken on the budget studies ; 5. To fix an overall budget working study for treatment at the Budget Committee meetings and to guarantee followup on the lines of action suggested by the Committee ; 6. To fix periodical studies for the Board meeting. Comparing the budgeted Net income and Loss Account and the Balance Sheet with the existent consequences attained. It is necessary that every budge t should be exhaustively discussed with the functional caput before it is finalized. It is the responsibility of the Budget Officer to see that the periodical budget studies are supplied to the receivers at frequent intervals every bit far as possible. The efficiency of the Budget Officer. and through him of the Budget Committee. will be judged more by the smooth working of the system and the understanding between the existent figures and the budgeted figures. Budgets are chiefly an inducement and a challenge for better public presentation ; it is up to the 8 Budget Officer to see that attending of the different functional caputs is drawn to it to confront the challenge in a successful mode. Advantages of Budgetary Control System: 1. The usage of budgetary control system enables the direction of a concern concern to carry on its concern activities in the efficient mode. 2. It is a powerful instrument used by concern houses for the control of their outgo. It in fact provides a yardstick for mensurating and measuring the public presentation of persons and their sections. 3. It reveals the divergences to direction. from the budgeted figures after doing a comparing with existent figures. 4. Effective use of assorted resources like—men. stuff. machinery and money is made possible. as the production is planned after taking them into history. 5. It helps in the reappraisal of current tendencies and framing of future policies. 6. It creates suited conditions for the execution of standard bing system in a concern organisation. 7. It inculcates the feeling of costconsciousness among workers. 8. It helps the principal of direction by exclusion to use. 9. Management which has developed a good ordered budget programs and which operate consequently. have greater favor from recognition bureaus. 9 Restrictions of Budgetary Control System: 1. Based on Estimates: Budgets may or may non be true. as they are based on estimations. 2. Time factor: Budgets can non be executed automatically. Accuracy in budgeting comes through experience. Management must non anticipate excessively much during the development period. 3. Cooperation Required: Staff co-operation is normally non available during budgetary control exercising. The success of the budgetary control depends upon willing co-operation and teamwork. 4. Expensive: Its execution is rather expensive. No budgetary programme can be successful unless equal agreements are made for supervising and disposal. 5. Not a replacement for direction: Budget is merely a managerial tool. It can non replace direction. 6. Rigid papers: Budgets are considered as stiff papers. But in world. firm’s personal businesss continuously change under inflationary force per unit area and altering authorities policies. 10 ZERO BASE BUDGETS The technique of zero base budgeting suggests that an administration should non merely do determinations about the proposed new programmes. but should besides reexamine the rightness of the bing programmes from clip to clip. Such a reappraisal should peculiarly be done of such duty Centres where there is comparatively high proportion of discretional costs. Costss of this type depend on the discretion or policies of the duty Centre or top directors. These costs have no direct relation to volume of activity. Hence. direction discretion typically determines the sum budgeted. Some illustrations are: outgo on research and development. forces disposal. legal consultative services. Zero base budgeting. as the term suggests. examines or reviews a programme or map or duty from ‘scratch’ . The referee returns on thepremise that nil is to be allowed. The director suggesting the activity has. hence. to warrant that the activity is indispensable and the assorted sum s asked for are sensible taking into history the end products or consequences or volume of activity envisaged. No activity or disbursal is allowed merely because it was being allowed or done in the past. Therefore harmonizing to this technique each programme. whether new or bing. must be justified in its entireness each clip a new budget is formulated. It involves: 1. Covering with peculiarly all elements of mangers’ budget requests 2. Critical scrutiny of on-going activities along with the freshly proposed activities 3. Supplying each trough a scope of pick in puting precedences in regard of different activities and in allocating resources. 11 Procedure of Zero Base Budgeting: The undermentioned stairss are involved in Zero base budgeting: Determining the aims of budgeting: The aim may be ‘to consequence cost decrease in staff operating expenses or it may be to drop. after careful analysis. undertakings which do non suit into accomplishment of the organisations objectives etc. Deciding on range of application: The extent to which zero base budgeting is to be introduced has to be decided. i. e. whether it will be introduced in all countries of the organisation’s activities or merely in a few selected countries on test footing. Developing determination units Decision units for which cost-benefit analysis is proposed hold to be developed so as to get at determinations whether they should be allowed to go on or to be dropped. Each determination unit. every bit far as possible should be independent of other units so that it can be dropped if the cost analysis proves to be unfavorable for it. Developing determinatio n bundles: A determination bundle for each unit should be developed. While developing a determination bundle. replies to the undermentioned inquiries would be desirable: †¢ Is it necessary to execute a peculiar activity at all? If the reply is in the negative. there is no demand to continue farther. †¢ How much has been the existent cost of the activity and what has been the existent benefit both in tangible every bit good as intangible signifiers? †¢ What should be the estimated cost of the degree of activity and the estimated benefit from 12 such activity? †¢ Should the activity be performed in the manner in which it is being performed. and what should be the cost? †¢ If the undertaking or activity is dropped. can the unit be replaced by an outside bureau? After finishing determination bundles for each unit. the units are ranked harmonizing to the findings of cost benefit analysis. Essential undertakings are identified and given the highest ranks. The last phase is that of implementing the determination taken in the visible radiation of the survey made. It involves the choice and credence of those undertakings which have a positive cost-benefit analysis or which are capable of run intoing the aims of the organisation. The above analysis shows that zero base budgeting is in a manner an extension of the method of cost benefit analysis to the country of the corporate budgeting. Advantages of Zero Base Budgeting: †¢ It provides the organisation with systematic manner to measure different operations and program mes undertaken. It enables direction to apportion resources harmonizing to precedence of the programmes. †¢ It ensures that each and every programme undertaken by directors is truly indispensable for the organisation. and is being performed in the best possible manner. †¢ It enables the direction to O.K. departmental budgets on the footing of cost-benefit analysis. No arbitrary cuts or increase in budget estimations are made. †¢ It links budgets with the corporate aims. Nothing will be allowed merely because it was being done in the yesteryear. An activity may be shelved if it does non assist in accomplishing the ends of the endeavors. 13 †¢ It helps in placing countries of uneconomical outgo and. if desired. it can besides be used for proposing alternate classs of action. †¢ It facilitates the debut and execution of the system of `management by objectives’ . Thus it can be used non merely for fulfilment of the aims of traditional budgeting. but besides for a assortment of other intents. It is contended that zero base budgeting is clip devouring. Of class. it is true. but it happens merely in the initial phases when determination units have to be identified and determination bundles have to be developed or completed. Once this is done. and the methodological analysis is clear. zero base budgeting is likely to take less clip than the traditional budgeting. In any instance. till such clip the organisation is decently acclimatized to the technique of zero base budgeting. it may be done in a manner that allduty centre’s are covered at least one time in three or four old ages. Zero base budgeting as a construct has become rather popular these yearss. The technique was foremost used by the U. S. Department of Agriculture in 1962. Texas Instruments. a transnational company. pioneered its usage in the private sector. Today. a figure of major companies such as Zerox. BASF. International Harvester and Easter Airlines in the United State are utilizing the system. Some sections of the Government of India have late introduced zero base budgeting with a position to doing the system of budgetary control more effectual. 14 PERFORMANCE BUDGETS Performance budgeting ( or programme budgeting ) has been designed to rectify the defects of traditional budgeting by stressing management’s considerations/ attacks. Both the fiscal and physical facets are incorporated into the budget. A public presentation budget presents the operations of an administration in footings of maps. programmes. activities. and undertakings. In public presentation budgeting. precise detention of occupation to be performed or services to be rendered is done. Second. the budget is prepared in footings of functional classs and their sub-division into programmes. activities. and undertakings. Third. the budget becomes a comprehensive papers. Since the fiscal and physical consequences are interwoven. it facilitates direction control. The Main aims of Performance Budgeting are: ( I ) to organize the physical and fiscal facets ; ( two ) to better the budget preparation. reappraisal and decision-making at all degrees of direction ( thre e ) to ease better grasp and reappraisal by commanding governments ( legislative assembly. Board of Trustees or Governors. etc ) as the presentation is more purposeful and apprehensible ; ( four ) to do more effectual public presentation audit possible ; and ( V ) to mensurate progress towards long-run aims which are envisaged in a development program. Performance budgeting involves rating of the public presentation of the administration in the context of both specific. every bit good as. overall aims of the administration. It presupposes a crystal clear perceptual experience of organizational aims in general. and short-run concern aims as stipulated in the budget. in peculiar by each employee of theadministration. irrespective of his degree. It therefore. provides a definite way to each employee and besides a control mechanism to higher direction. 15 Performance budgeting requires readying of periodic public presentation studies. Such studies compare budget and existent informations. and demo discrepancies. Their readying is greatly facilitated if the authorization and duty for the incurrence of each cost component is clearly defined within the firm’s organizational construction. In add-on. the accounting system should be sufficiently detailed and coordinated to supply necessary informations for studies designed for the peculiar usage of the persons or cost Centres holding primary duty for specific cost. The duty for fixing the public presentation budget of each section lies on the several Department Head. Each Department Head will be supplied with a transcript of the subdivision of the maestro budget appropriate to his domain. For illustration. the main purchaser will be supplied with the transcript of the stuffs purchase budget so that he may set up for purchase of necessary stuffs. Periodic studies from assorted subdivi sions of a section will be received by the departmental caput that will subject a drumhead study about his section to the budget commission. The study may be daily. hebdomadal or monthly. depending upon the size of concern and the budget period. These studies will be in the signifier of comparing of budgeted and existent figures. both periodic and cumulative. The intent of fixing these studies is to quickly inform about the divergences in existent and budgeted activity to the individual who has the necessary authorization and duty to take necessary action to rectify the divergences from the budget. 16 FUNCTIONAL BUDGET A functional budget is one which is related to map of the concern as for illustration. production budget relating to the fabrication map. Functional budgets are prepared for each map and they are subordinate to the maestro budget of the concern. The assorted types of functional budgets to be prepared will change harmonizing to the size and nature of the concern. The assorted normally used functional budgets are: †¢ †¢ †¢ †¢ †¢Ã¢â‚¬ ¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Gross saless budget Production budget Plant use budget Direct-material usage budget Direct-material purchase budget Direct-labour ( forces ) budget Factory overhead budget Production cost budget Ending-inventory budget Cost-of-goods-sold budget Selling and distribution cost budget Administration disbursals budget Research and development cost budget ( xiv ) Capital outgo budget Cash budget 17 Illustration: Gross saless Budget: Gross saless forecast is the beginning of budgeting and hence gross revenues budget assumes primary importance. The measure which can be sold may be the chief budget factor in many concern projects. In any instance in order to chalk out a realistic budget programme. there must be an accurate gross revenues prognosis. The gross revenues budget indicates for each merchandise: 1. The measure of estimated gross revenues and 2. The expected unit merchandising monetary value. These informations are frequently reported by parts or by gross revenues representatives. In gauging the measure of gross revenues for each merchandise. past gross revenues volumes are frequently used as a starting point. These sums are revised for factors that are expected to impact future gross revenues. such as the factors listed below. 1. Backlog of unfilled gross revenues orders 2. Planned advertisement and publicity 3. Expected industry and general economic conditions 4. Productive capacity 5. Projected pricing 6. Findingss of market research surveies 7. Relative merchandise profitableness. 8. Competition. 18 Once an estimation of the gross revenues volume is obtained. the expected gross revenues gross can be determined by multiplying the volume by the expected unit gross revenues monetary value. the gross revenues budget represents the entire gross revenues in physical measures and values for a future budget period. Gross saless directors are invariably faced with job like expectancy of client demands. new merchandise demands. rival schemes and assorted alterations in distribution methods or promotional techniques. The intents ofgross revenues budget is non to try to gauge or think what the existent gross revenues will be. but instead to develop a program with clearly defined aims towards which the operational attempt is directed in order to achieve or transcend the nonsubjective. Hence. gross revenues budget is non simply a gross revenues prognosis. A budget is a planning and control papers which shows what the direction intends to carry through. Thus. the gross revenues budget is active instead than passive. A gross revenues prognosis. nevertheless. is a projection or estimation of the available client demand. A prognosis reflects the environmental or competitory state of affairs confronting the company whereas the gross revenues budget shows how the direction intends to respond to this enviro nmental and competitory state of affairs. A good budget flexible joints on aggressive direction control instead than on inactive credence of what the market appears to offer. If the company fails to do this differentiation. the budget will stay more a figure-work exercising than a on the job tool of dynamic direction control. 19 The gross revenues budget may be prepared under the undermentioned categorization or combination of categorizations: 1. Merchandises or groups of merchandises. 2. Areas. towns. salesmen and agents. 3. Types of clients as for illustration: ( I ) Government. ( two ) Export. ( three ) Home gross revenues. ( four ) Retail terminals. 4. Period—months. hebdomads. etc Example of Gross saless Budget: XYZ Ltd. Gross saless Budget for the Year Ended 31 March XXXX Particulars Units Selling Price ( P. U ) Total Gross saless Value ( Rs. ) Product A Merchandise B Total 5000 10000 75 80 375000 800000 1175000 20 Lead TO THE PREPARATION OF THE MASTER BUDGET When all the necessary functional budgets have been prepared. the budget officer will fix the maestro budget which may dwell of budgeted net income and loss history and budgeted balance sheet. These are in fact the budget sum-ups. When the maestro budget is approved by the board of managers. it represents a criterion for the accomplishment of which all the sections will work. On the footing of the assorted budgets ( agendas ) prepared earlier in this survey. weprepare below budgeted income statement and budgeted balance sheet. Illustration: Floatglass Manufacturing Company requires you to show the Master budget for the 31 March 2012 from the undermentioned information: Gross saless: Toughened Glass Bent Glass Direct Material Cost Direct Wages Factory Overheads: Indirect Labour Works Manager Foreman Rs. 500 per month Rs. 400 per month 2. 5 % on Gross saless Rs. 600000 Rs. 200000 60 % of Gross saless 20 workers @ Rs. 150 per month 21 Shops and Spares Depreciation on Machinery Repairs and Maintenance Other Sundries Administration. merchandising and Distribution Expenses Rs. 12600 Rs. 3000 Rs. 8000 10 % on Direct Wages Rs. 36000 per twelvemonth Solution: Master Budget for the Year Ending 31 March 2012 Particulars Amount ( Rs. ) Gross saless: Toughened Glass Bent Glass Total Gross saless Less: Cost of Production: Direct Material Direct Wages Prime Cost ( A ) Fixed Factory Overhead: 480000 36000 516000 600000 200000 800000 Amount ( Rs. ) 22 Works Manager’s Salary Foreman’s Salary Depreciation Light and Power Total Fixed Factory Overhead ( B ) Variable Factory Overhead: Shops and Spares Repairs and Maintenance Sundry Expenses Total Variable Factory Overhead ( C ) Works Cost ( A+B+C ) Gross Profit ( Sales- Works Cost ) Less: Administration. Selling and Distribution Expenses Net Net income 6000 4800 12600 3000 26400 20000 8000 3600 31600 574000 226000 36000 190000 23 Capital EXPENDITURE BUDGET: The capital outgo budget represents theplanned spending on fixed assets like land. edifice. works and machinery. etc. during the budget period. This budget is capable to rigorous direction control because it entails big sum of outgo. The budget is prepared to cover a long period of old ages and it undertakings the capital costs over the period in which the outgo is to be incurred and the expected net incomes. The readying of this budget is based on the undermentioned considerations: 1. Operating expense on production installations of certain sections as indicated by the works use budget. 2. Future development programs to increase end product by enlargement of works installations. 3. Replacement petitions from the concerned sections 4. Factors like gross revenues possible to absorb the increased end product. possibility of monetary value decreases. increased costs of advertisement and gross revenues publicity to absorb increased end product. etc. Merits/Adv antages: 1. It outlines the capital development programme and estimated capital outgo during the budget period. 2. It enables the company to set up a system of precedences. When there is a deficit of financess. capital rationing becomes necessary. 3. It serves as a tool for commanding outgo. 4. It provides the sum of outgo to be incorporated in the hereafter budget 24 sum-ups for computation of estimated return on capital employed. 5. This enables the hard currency budget to be completed. With other hard currency committednesss capital outgo committedness should besides be considered for the completion of the budget. 6. It facilitates cost decrease programme. peculiarly when modernisation and redevelopment is covered by this budget. 25 FIXED AND FLEXIBLE BUDGETS Fixed Budget: Harmonizing to Chartered Institute of Management Accountants of England. â€Å"a fixed budget is a budget designed to stay unchanged irrespective of the degree of activity really attained† . A fixed budget shows the expected consequences of a duty centre for merely one activity degree. Once the budget has been determined. it is non changed. even if the activity alterations. Fixed budgeting is used by many servicecompanies and for some administrative maps of fabrication companies. such as buying. technology. and accounting. Fixed Budget is used as an effectual tool of cost control. In instance. the degree of activity attained is different from the degree of activity for budgeting intents. the fixed budget becomes uneffective. Such a budget is rather suited for fixed disbursals. It is besides known as a inactive budget. Essential conditions: 1. When the nature of concern is non seasonal. 2. There is no impact of external factors on the co ncern activities 3. The demand of the merchandise is certain and stable. 4. Supply orders are issued on a regular basis. 5. The market of the merchandise should be domestic instead than foreign. 6. There is no demand of particular labor or stuff in the production of the merchandises. 7. Supply of production inputs is regular. 8. There is a tendency of monetary value stableness. Generally. all above conditions are non found in pattern. Hence fixed budget is non of import 26 in concern concerns. Merits/advantages: 1. Very simple to understand 2. Less clip devouring Demerits/Disadvantages: 1. It is misdirecting. A hapless public presentation may stay undetected and a good public presentation may travel unfulfilled. 2. It is non suited for long period. 3. It is besides found unsuitable peculiarly when the concern conditions are altering invariably. 4. Accurate estimations are non possible. Flexible Budget Harmonizing to Chartered Institute of Management Accountants of England. †a flexible budget is defined as a budget which. by acknowledging the difference between fixed. semi-variable and variable costs is designed to alter in relation to the degree of activity attained. † Unlike inactive ( fixed ) budgets. flexible budgets show the expected consequences of a duty centre for several activity degrees. You can believe of a flexible budget as a series of inactive budgets for different degrees of activity. Such budgets are particularly utile in gau ging and commanding mill costs and operating disbursals. It is more realistic and operable because it gives due consideration 27 to be behavior at different degrees of activity. While fixing a flexible budget the disbursals are classified into three classs viz. 1. Fixed. 2. Variable. and 3. Semi-variable. Semi-variable disbursals are farther segregated into fixed and variable disbursals. Flexible budgeting may beresorted to under following state of affairss: 1. In the instance of new concern venture due to its typical nature it may be hard to calculate the demand of a merchandise accurately. 2. Where the concern is dependent upon the clemency of nature e. g. . a individual covering in wool trade may hold adequate market if temperature goes below the freeze point. 3. In the instance of labour intensive industry where the production of the concern is dependent upon the handiness of labor. Merits/ Advantages: 1. With the aid of flexible budget. the gross revenues. costs and net income may be calculated easy by the concern at assorted degrees of production capacity. 2. In flexible budget. accommodation is really s imple harmonizing to alteration in concern conditions. 3. It besides helps in finding of production degree as it shows budgeted costs with categorization at assorted degrees of activity along with gross revenues. Hence the direction can easy choose the degree of production which shows the net income predetermined by the proprietors of the concern. 4. It besides shows the measure of merchandise to be produced to gain determined net income. 28 Demerits/Disadvantages: 1. The preparation of flexible budget is possible merely when there is proper accounting system maintained. perfect cognition about the factors of production and assorted concern fortunes is available. 2. Flexible Budget besides requires the system of standard costing in concern. 3. It is really expensive and labour oriented. Need for flexible budget: 1. Seasonal fluctuations in gross revenues and/or production. for illustration in soft drinks industry ; 2. A company which keeps on presenting new merchandises or makes alterations in the design of its merchandises often ; 3. Industries engaged in make-to-order concern like ship edifice ; 4. An industry which is influenced by alterations in manner ; and 5. General alterations in gross revenues. 29 Illustration: A mill which expects to run 7. 000 hours. i. e. . at 70 % degree of activity. furnishes inside informations of disbursals as under: Particulars Variable Expenses Amount ( Rs. ) 1260 Semi- Variable Expenses 1200 Fixed Expenses 1800 The semi-variable disbursals go up by 10 % between 85 % and 95 % activity and by 20 % above 95 % activity. Construct a flexible budget for 80. 90 and 100 per cent activities. Solution: Particulars Budgeted Hours Variable Expenses Semi-Variable Expenses Fixed Expenses Total Expenses Recovery Rate Per Hour 70 % 7000 1260 1200 1800 4260 0. 61 80 % 8000 1440 1200 1800 4440 0. 55 90 % 9000 1620 1320 1800 4740 0. 53 100 % 10000 1800 1440 1800 5040 0. 50 30 Difference between Fixed and Flexible Budget: Fixed Budget Flexible Budget It does non alter with existent volume of It can be recasted on the footing of activity activity achieved. Thus it is known as stiff degree to be achieved. Thus it is non stiff. or inflexible budget. It operates on one degree of activity and under It consists of assorted budgets for one set of conditions. It assumes that there different degrees of activity. will be no alteration in the prevalent conditions. which is unrealistic. Here as all costs like – fixed. variable and Here analysis of discrepancy provides utile semi-variable are related to merely one degree information as each cost is analyzed of activity so variance analysis does give utile information. If the budgeted and existent activity degrees differ Flexible budgeting at different degrees of significantly. so the facets like cost activity facilitates the ascertainment of ascertainment and monetary value arrested development do non give a cost. arrested development of selling monetary value and tendering right image . of citations. a meaningful footing of non harmonizing to its behavior. Comparison of existent public presentation with It provides budgeted marks will be meaningless comparing of the existent public presentation with specially when there is a difference the budgeted marks. between the two activity degrees. 31 BIBLIOGRAPHY 1 ICAI Module on Cost Accounting 2 Newsletters and sentiments published by ICAI 3 hypertext transfer protocol: //en. wikipedia. org/wiki/Budget 4 World Wide Web. icai. org

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Language containing distinctive musical features Assignment

Language containing distinctive musical features - Assignment Example They institute an introduction into the song’s chorus. Key among such is rhyme. The ab, ab rhyme pattern evident at the end of every line helps develop the rhythm in the song. Additionally, the placement of stress in specific parts of the four sentences enhances the development of the distinct sound pattern as well. The sonic structure of the sentence enhances the message it conveys. Furthermore, the structure has distinct allegory connected strategically to Marlboro thus enhancing its effectiveness in commercials. The repetition in both phrases in the sentence helps develop a definitive rhythm. The sentence has both factual and cultural connotations thereby enhancing its effectiveness in adverts. The literal meaning of the sentence earns it legitimacy in the advert. The need for cultural association validates the use of the sentence in songs as Kanye West does in one of his songs. The musician varies stress in the sentence besides infusing it in an effectively structured stanza in which in enhances the rhythm of the music through rhymes, allegory and repetitions among other stylistic devices. The words in the sentence have synonymous sound patterns a feature that enhances the rhythm of the line in a stanza. The sentence is a composition of culturally familiar products. The use of such is strategic in order to improve the consumption of the song. The audience readily identifies with the products thereby comprehend the message in both the line and the

Illegal immigration of Mexico Essay Example | Topics and Well Written Essays - 750 words

Illegal immigration of Mexico - Essay Example Tighter border control would be the first necessary solution for the problem of illegal immigration. Tighter border control must be enforced through increased manpower and the integration of better technology into the system. According to Krikorian, the current state of manpower for border control has only one man guarding an entire mile of the borderline. (Krikorian 2006) It is of no surprise then that illegal immigrants can sneak in during their watch. The government must thus appropriate sufficient funds to employ additional border guards. Increased manning of the Mexican border, however, would not be sufficient by itself to effectively tighten border control and decrease the number of illegal entries. An increase in manpower must also be accompanied by an upgrading of the currently technology, such as sensors and floodlights, for example, that are being used in border control. The construction of heavier and taller fences with adequate lighting to replace the weak wire fences tha t litter the borderline is one basic upgrade that would already be of much help. Although this upgrade would come at a cost, it would be worth it because the economic costs being borne by the government and the citizenry as a consequence of illegal immigration far outweighs the cost of such upgrades. Second, a national verification system accessible to prospective employers must be set up to ensure secure verification of a prospective employee's legal status. Right now, illegal immigrants are easily entering employment with the assistance of a black market catering to the manufacture of false identification papers. Since the documents that are being required for employment can be readily falsified, employers sometimes unwittingly employ illegal immigrants. As such, there is a need to set up a secure and comprehensive database of all citizens, legal immigrants, and foreign nationals with work permits so that companies and employers can verify the work eligibility of an applicant. According to Mazzolia and Simpson, such a system was already proposed much earlier upon the enactment of the 1986 Immigration Reform and Control Act but was left unimplemented to pacify interest groups who objected to such a system as intrusive of personal privacy. (Mazzolia, 2006) This intrusion on pers onal privacy would supposedly occur since the open access to such a system would allow an employer to verify the records not only of his applicants but also of his next-door neighbor. While such abuses are indeed possible with the proposed system, the effectivity and necessity of implementing such a system justifies such a sacrifice. According to Vaughan of the Center for Immigration Studies, a similar pilot program launched in 1997 succeeded not only in detecting illegal alien applicants but was also shown to effectively dissuade illegal aliens from seeking employment in such establishments. (Vaughan 2006) With such a high probability of success, we cannot afford to forfeit the use of such a system for privacy concerns that can actually be tempered by limiting the extent of personal information that would be available in the

State House Essay Example | Topics and Well Written Essays - 1000 words

State House - Essay Example The path to Doric Hall from Beacon Hill is accessed through a staircase with the main doors remaining closed except on three occasions. This is probably representative of the â€Å"gate to the City†, which is informed by the only times these doors are opened. First, the US President opens the doors when a foreign head of state visits Boston, as well as a visit. The doors are also opened during the Governor’s last day in office as he exits for the final time. The Governor walks out on that day as a final act of re-joining the people, walking alone from his executive chamber through Doric Hall on the second floor.Governor William Weld who went, down the steps, to meet Lt. Governor Paul Cellucci, has flouted this. On the other hand, Cellucci, in turn, failed to do it because the front of the building was being renovated. Jane Swift, who was in an acting capacity, chose to take the walk with her family, while mitt Romney had to take it the day before his last day in office as Deval Patrick decided to take his oath and give his inaugural address on the staircase. Finally, on return from battle, the doors are opened when a regimental flag is returned to the state. However, because Washington D.C. now receives all the regimental flags, the last time that this was done was following the end of the Vietnam War.The legislature system has some obvious weaknesses and strengths. One of its key strengths is the ability of a bicameral legislature, as seen at the Boston State House, is that it is able to divide power. This keeps power from becoming too concentrated in the hands of one house, i.e., either the Senate or the House of Representatives (Todd 25). Essentially, the House of Representatives in the United States begins the appropriation of the bill. The Senate, on the other hand, confirms the appointment of the Governor or President, as well as approving decisions on state issues or foreign policy. Through this kind of spreading of power, there are checks affected on the entire system since it makes it very difficult to influence both houses, as compared to one house in the unicameral system. The bicameral legislature also balances between broad and focused issues (Todd 25). In most bicameral legislative systems, one house, in this case the Senate has fewer representatives, even though they are

How To Keep Yourself Healthy Essay

How To Keep Yourself Healthy Essay Maintaining a healthy body is not that easy and not so difficult also. Always there is a need to be healthy because unhealthy body will be attacked by many diseases. Here we will discuss about some tips which will help to have a happy and healthy life. Most important tip for a healthy body is to have healthy food and eat them at proper time. Avoid eating junk food. None of the nutrients are available in these junks foods so no point in having them. Your diet should contain food which has more nutrients. Try to include leafy vegetables, fresh vegetables, fruits, milk, and fish in your daily diet. Make sure you are having your breakfast regularly. Skipping your breakfast regularly will definitely affect your health. If water content in your body goes low then it will lead to dehydration. So to keep the body healthy make sure you drink more amount of water daily. Exercise also pays a vital role in keeping your body healthy. Regular exercise will also keep your body in good health. By exercise it doesnt mean a simple and slow walk. It should be in such a way that your body should start sweating. You can go for running, do cycling, walking faster etc. Daily find some time 30 mints to one hour per day for your exercise. Have a regular checking of your weight and try to control it. Its nice to have Medical checkups and dental checkups by which you can have an idea about your health condition. Apart from these always try to manage your stress. Most people due to stress at work have health problems. By controlling your stress you can maintain a healthy body. Bad habits like smoking, drinking, using of drugs should be avoided. Usage of these items will have a very bad affect on your health. Your body should get enough time to take rest. Make sure you get a sleep of 8 hours daily. Sleep is very important for healthy body and also for mental and emotional happiness. Comparison of health and fitness Fitness and health seems to be same for everyone but they have entirely two different meanings. Fitness can be defined as the physical ability to perform work, sports etc with ease. While health is a condition in which the body should have resistance capacity from all illness and all parts of the body should works fine without any problem. Your body should possess both fitness as well as health. Men and ladies are equally concerned about your body. They want their body to be fit and healthy. Due to more demand for fit and healthy body many gyms and work out centers are opened. To maintain a healthy and fit body primarily requires self control and will power. Many factors can divert us from achieving our goal of having a fit and healthy body. But never deviate and focus on it and try achieving their goal as all knows Health is wealth. Health can be maintained by proper diet, exercise and hygiene. But in the other case to keep your body you need to do proper exercise. Usually sports people will have a fit body. They shape their body in such a way that it will be fit for their respective sport. But coming to healthy body it is just a matter of controlling weight and making your body immune to diseases. Some people will try to make their body fit so vigorously that they will not think about their diet and health. This creates a problem. So always make sure your body to be healthy and fit. Compared to healthy body, fit body needs more exercise and diet. For a healthy and fit body walking is very good exercise which helps in burning the excess fat in your body. A fit body doesnà ¯Ã‚ ¿Ã‚ ½t mean that it should look good from outside. A fit and healthy body should be physically active and energetic and smart enough to accept any tasks given to them. Athletic training This is a program followed by athletes to make their body ready for the respective sport that they are going to perform. Training is mainly conducted by certified professional. It is the duty of the trainers to attend if any emergency comes for the athlete Athletic training also deals about how to avoid and cure the sport injuries through many therapeutic exercises and by providing proper food. Candidates who are interested to become an athlete trainer should first get a degree from certified training curriculum. There are many programs under which certifications are possible. Some of them are nutrition, first aid, emergency care, treatment for injury and illness etc. Class room trainings are available for this certification. Most of the certified trainers are having a master degree. Athletic trainers have got a very important role in taking care of the injured athletes. Quick emergency and reviews of the injured athletes are done by these trainers. They also provide an important communication link between the bruised athlete, his family, his coach and his family and will help them to decide when the athlete should be ready for his next practice session or competition. Never compare athletic training with personal training. Both have got vast differences. Athletic trainers can be seen at places where people with more physical activities are available. Athletic training services are available in Schools, clinics, Hospitals, workplaces. Athletic training is a profession that has got wide variety of career opportunities. Yearly the demand for the profession is growing. They can work in High schools as well in college levels to help the students who got injured during any practice or competition. They have got opportunities in Sports health clinic and also in Health care departments of many companies. In these companies they provide service to the employees who have got any bruises or injuries. They have opportunities in armed forces as well. Tips for a healthy and fit body For a healthy and fit body you need to keep on doing exercise. Many factors will come across us and can divert us from achieving our goal of being fit and healthy. But you should be having strong self discipline and will power to achieve this healthy and fit body. Below given are some methods through which can maintain a fit and healthy body. Most important is the exercise. Make it a routine to move your body. You can do this by running around your home, playing with your kids, climbing up and down the stair case and so on. This will help in increasing your blood circulation. You can also join a gym where you will have an instructor who can guide you to have a healthy and fit body. Try to avoid fatty food and junk food. These foods are not going to give any nutrients to your body. Better stick on to a diet which includes fresh vegetables, fruits, fish and Dairy Products such as milk. Limited number of dried fruits can be included in your diet. Reduce intake of foods which are more salty and food with more sugar. Too much sugar and salt is bad for health. Have food at proper timings .Try not skip any meals. If you dont feel hungry also eat something but dont skip the meals. Avoid all the bad habits like smoking, drinking, using drugs etc. This will make your health more badly. Try to manage your stress by walking in beach or watching any sport channel or by listening to music or anything that makes you relaxed. Keep your hands clean regularly because many diseases can attack your body though you hands. Try to maintain good hygiene which will keep all the sickness away from your body. Do a regular body as well as dental checkups. Maintain your healthy weight and make sure it is under control. Above given tips can help you to have a fit and healthy body. But most important is self determination. If you possess self determination then definitely you can achieve a healthy and fit body. How Can Regular Exercise Keep You Healthy Both nutrition and exercise play a very vital role in the amount of fat stored in the body. All types of exercise will not reduce your body fat. For reducing body fat, first try to increase the duration of exercise rather than decreasing the level of food intake. Studies have proved that there is a significant relation between lack of physical activity and fat build up. Just by being more active generally such as ascending stairs instead of taking the lift, moving in the office instead of sitting still in front of our desktop as well as showing some enthusiasm instead of boredom, are all various means to burn calories and reducing body fat. It seems everyone have forgotten the value of being active. Dieting without exercising will result in getting fatter. One should increase his/her metabolism by exercising regularly to avoid getting fat. The easiest exercise for strengthening your bones, controlling weight, leg muscles toning and improving self esteem is walking. It is advisable to walk at a moderate pace. Walking at high speeds every alternate day will help improve ones system. Walking aimlessly for per hour day will not be effective at all. Exercise and diet are linked to each other when it comes to good health and weight loss. Better than maintaining a balanced diet without exercise, it is better to exercise without dieting. Performing sit ups and crunches alone, the fat in your body will not transform to muscles. You have to do many other activities like active sports, running, cycling that help get rid of excess body fat as it burn lots of calories. Running at full vigor burns more calories than walking at brisk pace. It is very important that you keep in mind to lose body fat; burn more calories and eat less. More calories can be burnt and you can attain your goal quicker if you focus on exercising harder.

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Wedding Consultants 1.0 Executive Summary CMG Wedding Consultants is a full service company that provides complete consulting services for weddings, birthdays, anniversaries and every other special event. Our consultants are experienced and dedicated professionals with many years of event planning experience. CMG is unique in that we give our clients our undivided attention. We listen to their needs and work with them to create the event of their dreams. Our clients' wishes become our commands. So whether our client wants a Western, Tropical, Las Vegas or more traditional wedding, we can help. Our services include weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as full-service florists, hair stylists, entertainers, musicians, etc. We also provide the inventions and thank you notes 1.1 Objectives Whether this is our client's first wedding, a renewal of their vows or their anniversary, we want every detail of their event to be both a pleasurable and a memora ble experience. With our full service the client does not have to stress on getting everything done, we do it all for them. Therefore we offer a host of packages and services specifically tailored to the needs of each couple. 1.2 Mission At CMG our mission is to keep our customers pleased! Party’s can be very stressful and time consuming, we are here to take the pressure of the client so they can spend more leisure time with family. We listen to their needs and work with them to create the event of their dreams. Our client’s wishes become our commands. We are confident that this business venture will be a success and we estimate that our 1.3 Keys to Success The keys to our success are as follows: 1. Service our clients' needs promptly and efficiently. 2. Maintain excellent working relationships with vendors such as musicians, hair salons and bridal shops. 3. Maintain a professional image at all times. net income will increase more than 10% by the second year. 2.0 Compa ny Summary CMG Wedding Consultants is a start-up company that provides wedding, reunions, and anniversary consulting services to brides, grooms and other family members. We are a full-service bridal consulting group and our goal is to put the fun back into planning a wedding, birthday or anniversary party. Too many people become overly stressed and frustrated when plan... ...eivables $51,322 $67,444 $74,775 Subtotal Cash from Operations $89,442 $113,188 $125,093 Additional Cash Received Extraordinary Items $0 $0 $0 Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of other Short-term Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 Capital Input $0 $0 $0 Subtotal Cash Received $89,442 $113,188 $125,0 Expenditures 2001 2002 2003 Expenditures from Operations: Cash Spent on Costs and Expenses $1,396 $1,029 $1,150 Wages, Salaries, Payroll Taxes, etc. $53,100 $76,200 $85,800 Payment of Accounts Payable $11,446 $9,556 $10,252 Subtotal Spent on Operations $65,942 $86,785 $97,202 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Short-term Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Adjustment for Assets Purchased on Credit $0 $0 $0 Subtotal Cash Spent $65,942 $86,785 $97,202 Net Cash Flow $23,500 $26,404 $27,891 Cash Balance $28,500 $54,903 $82,794