财务管理作业:传统预算的优势 Advantages of Traditional Budgeting [2]
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论文字数:2000论文编号:org201708022136516399语种:英语 English地区:英国价格:免费论文
关键词:传统预算财务管理留学生作业
摘要:本文是留学生财务管理作业,主要内容是分析传统的预算制度的使用情况,以及以确保业务的方向,如何实现目标。
d internal bargaining processes. Conformance to budget is not seen as compatible with a drive towards continuous improvement.
Under economic uncertainty, inflexibility is somehow seen as the key failing factor of traditional budgeting, and organizations are being urged to move towards continuous budgeting systems to enable speedy and coordinated adaptations to actual and anticipated changes in the economic (Neely et al, 1997). Continuous budgeting system gives companies the agility and capability to follow changes in market situations, and to cope with economic uncertainty while keeping an eye on strategic objectives (Lorain, 2010).
Continuous budgeting system solves problems associated with infrequent budgeting and hence results in more accurate forecast. It is also more responsive to changing circumstances under economic uncertainty. Some companies use a continuous budget which means that a ongoing 12 months budget is presented by consecutively adding a new budget as each current month expire, such a process allow management to work at anytime, within the present 1 month component of a full 12 month annual budget. Continuous budgeting system make the planning process less irregular, rather than having managers go into the budget getting period at a specific time, managers are continuously involved in planning and budgeting process. The advantages of a continuous budget under economic uncertainty situation include, eliminating a fiscal year mind set by recognizing that business is an ongoing operation and should be managed accordingly. It also allows management to make corrective steps as forecast business condition change such as in economic uncertainty. It helps to reduce or eliminating the budget planning process that occurs at the end of each fiscal year.
Another recent survey jointly conducted by the American Productivity Quality Centres and IBM Global Business Services has found that companies focusing on planning, budgeting and forecasting as a business strategy are higher performers in all area than those focusing on cost accounting, control and cost management. The study also showed that high performing organizations tend to complete their budgeting cycle in 30 days compared to 90 days in low performing organizations and most of the high performers used continuous budgeting system when the economic in uncertain (Kinney and Raiborn, 2008).
Another example in the article author has mention how Kenyan business sail through under economic uncertainty. Kenyan have experience challenging times with business struggling to plan and price their product carefully so as not to erode the profit margins that they had planned for. Having exchange rate problems. Smart cfos employ a budgeting, principally a set of procedures used to develop budget. Author mention that Kenyan organization have limited resources and and they need to effectively plan and use them. This is why they implement budgets to help provides a means to achieve this. Budgets provide a useful benchmark of performance and help control profit and operations when compared to actual performance. The resulting variance guide management in appreciating what they need to do in the subsequent period. Employee performance and managerial performance is usually measured on qualitative terms, but budget gives a new meaning to evaluate performance through numbers and helps in rewarding high performers and correcting the low per
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