If you do not have enough money to do certain things you would like to do, then you can use this planning process to prioritise your spending and focus on the money on the things that are most important to you. Once you create your first budget, you can begin to use it and get a good sense for how it can keep your finances on track. Doing this you can easily forecast which months your finances may be tight and which ones you will have extra money. You can then look for ways to even out the highs and lows in your finances so that things can be more manageable. Forecasting your budget gives you an idea how much money you will be able to save for important things like your vacation, a new vehicle, and an emergency savings account.
It distinguishes between fixed and variable costs in this way the budget can be adjusted automatically to a particular activity. The flexible budget is an excellent control tool because it is geared towards a range of activities rather than a single level of activity. By using the flexible budget formula, a series of budgets can be developed for various levels of activities. The following steps need to be followed by management in order to build a flexible budget: 1) estimate the range of expected activity for a given period, 2) analyze cost behavior trends, whether fixed, variable, or mixed, 3) separate costs by behavior, that is, breakup mixed costs into variable and fixed, and finally,
Microeconomics Final Project Part 10 The different projects helped me learn important material throughout this course. Key materials and concepts I learned will benefit me in the future. Some of those concepts covered such as; the different economies and how they function, how supply and demand work and how one affects the other, how and why taxes are imposed, international trade, total utility and how it is calculated and how we can predict how a consumer might spend their money based off this, as well as fixed and variable inputs that help determine relationships between, for example, the amount of employees and goods produced as more employees are added and how the law of diminishing returns applies to this. There are different economies
Supply and Demand Simulation Amanda Huenefeld ECO/365 Sadu Shetty January, 14, 2013 Introduction Supply and demand are the two influences that govern pricing in the larger picture of a viable economic market. The two factors are like two forces. Equally the conclusive levels of supply and demand, and the comparative levels of the two in contrast to one another, are significant. The standard of supply and demand is that if one or both varies, there will be a transient difference in the amount of product manufacturers are equipped to sell and the quantity that consumers are willing to buy. This difference will cause the market price to increase or decrease when necessary until the quantities are the same.
A portfolio analysis help a company with making decisions on what products that they must considered to be the main focused and which one they should get rid of. The portfolio analysis raises the issue of cash flow availability for use in expansion and growth for products in the organization. The BCG Matrix and the portfolio analysis would benefit a company to see where they stand with their products and where they should put more focus on to bring that particular product up in the market. Even though there are products that are doing well for the organization they can also become problems. The economy is going through some tough times now and it could be hard to keep the stars the stars and the cash cow the cash cows (Portfolio Analysis,
Strategy Plan Update 3 Olalekan Famoroti STR/TM 581 Jan.,28 2013 Deborah Bowen Key Success Factors To implement the strategy efficiently, some key factors have to be taken into consideration. Key success factors cost of production, availability of resources, staff and management commitment, competitors, and time. These success factors would have to be considered before the commencement of the strategy implementation. Cash Budget Formulating a cash budget will streamline and guide kudler’s financial operations. With the cash budget, the company can determine shortage or excess cash at any point in time.
There are several economic considerations that must be evaluated and addressed prior to expanding into Kava. Nik’s team must properly analyze each issue and provide alternatives as well as propose contingencies in case an alternative fails or is no longer feasible. Some of the issues that will need to be considered include; * Economic growth opportunities * Current and future interest rates * Exchange rates * Inflation, market and trade cycles Due to the nature of the organization, developing a solid plan for addressing each economic factor associated with bank expansion is vital to the survival of the venture and will determine if future branches can be supported. Social Factors Due to the large disparity between the numbers of adults versus the number of children, evaluating the social factors involved with the bank’s expansion and how those factors will affect the bank’s ability to sustain a branch on this island is the most important part of the analysis process. Social factors that will need to be considered include; * Population growth rate * Demographics * Ethnic and religious factors * Advertising and publicity * Age distribution and career emphasis * Attitudes and opinions of the
Evaluating Fiscal Policy Alternatives Simulation ECO 372 November 28, 2011 Matthew Angner A government has a couple of roles the need to enforce in order to ensure that their people and land will be able to support them through any times. One of these roles is to invoke and sustain economic growth. The government can achieve this by trying to manipulate the trends in that particular economy, though fiscal policy. Fiscal policy is changes that are made to government spending or taxes that leads to one of two conclusions. One of these conclusions is that the economy will stimulate because of the changes being made, or the economy will slow down.
Pro forma financial information is generally used to illustrate the effects of transactions such as business combination, and change in capitalization. There are countless reasons on why companies use pro forma statement in their business, the most significant is the planning and control received when using pro forma. The process of using pro forma statements are less time consuming, they help businesses evaluate and make a better distinction between business plans (Scarborough, Wilson, & Zimmerer, 2009, p. 196). Pro forma statements are an excellent outlet for resources that will help a business forecast expected earnings should the company chose to merge with another company or even if the company wanted to sell off part of it operations (Scarborough, Wilson, & Zimmerer, 2009, p. 196). The pro forma statements are commonly used when applying for a business loan.
Searching for new sources to be competitive is an ever forgoing challenge. Lasting success requires steady and sometimes dramatic cost reductions, quality and delivery improvements, reduced cycle times, and improved responsiveness to customer, competitive and financial market demands. As I think about the best way to respond to these demands, the development of global strategies and approaches, including global sourcing strategies, will become an increasingly attractive option. Well-developed global sourcing strategies should include improvement opportunities. Global sourcing involves proactively integrating and coordinating common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations.