Why budgeting is important to a firm

Assignment Help Financial Accounting

Reference no: EM13183459

You are the manager of the XYZ Company. For the first time in the company's history you plan to involve department managers and supervisors in the annual budgeting process. At an upcoming kick-off meeting, you want to make sure the supervisors and managers understand what budgeting is and most importantly why it is important for the firm's success.

Explain at least 3 reasons why budgeting is important to a firm.

Understand why organizations budget and the processes they use to create budgets, and recognize situations that present potential ethical and legal issues and develop solutions for those issues.

Reference no: EM13183459

Questions Cloud

Determine the amount of revenue - cost and gross profit : Determine the amount of gross profit or loss to be recognized in each of the three years using percentage of completion method and how much revenue will San report in its 2011 and 2012 income statement related to this contract using the percentage-..

The universal soil loss equation : The Universal Soil Loss Equation (USLE)models water induced erosion by measuring known factors that affect erosion as soil stability. Explain why Andisols generally erode less than Entisols. 200-250 word limit

Compute vvgs or expected profit : Vincent van Gogh can produce paintings at constant marginal cost cV V G = 1. The population of buyers of VVG paintings is grouped into two categories: Serious Art Collectors (SAC) and Casual Art Collectors (CAC). The SAC to CAC population ratio is..

Evaluate the amount of gross profit or loss : Determine the amount of gross profit or loss to be recognized in each of the three years using the percentage-of-completion method.

Why budgeting is important to a firm : Understand why organizations budget and the processes they use to create budgets, and recognize situations that present potential ethical and legal issues and develop solutions for those issues.

Compute the monopolists profit-maximizing supply choice : A monopolist supplies to a market with (inverse) demand given by D(Q) = 100 ? Q. The monopolist has constant marginal cost c = 2. Compute the monopolists profit-maximizing supply choice and the corresponding mark-up over marginal cost.

Explain the reasons an auditor may assess control risk : Explain the reasons an auditor may assess control risk at the maximum level for one or more assertions embodied in an account balance.

What is the growth rate of real gdp during 2010 : Suppose the information in the following table is for a simple economy that produces only the following four goods and services: textbooks, hamburgers, shirts, and cotton. Assume that all the cotton is used in the process of producion.what is the ..

What is the overall projects risk-adjusted npv : What is the overall project's risk-adjusted NPV? (Hint: Use the percentage given in the question to adjust up or down to obtain the risk-adjusted discount rate. Use this to re-calculate the NPV, IRR, MIRR, payback period, and expected NPV

User Account

All Pages