efine breakeven point for a business and how it is calculated. Why is so much emphasis placed on budgets in today's corporate america? Do you think that budgets are a good financial projection, or do you think that most businesses create underestimated budgets in order to be able to meet financial goals? Discuss and give examples.

efine breakeven point for a business and how it is calculated. Why is so much emphasis placed on budgets in today's corporate america? Do you think that budgets are a good financial projection, or do you think that most businesses create underestimated budgets in order to be able to meet financial goals? Discuss and give examples.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 9DQ: Suppose that the controller of your companys largest factory is a particularly optimistic...

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Similar questions

Why do companies and businesses create budgets, what is the importance and how do budgets help businesses be more successful? Provide examples.
Which of the following is not a benefit of budgeting? O Provide a way to measure business performance Help managers communicate expectations and quickly. spot deviations Keep managers focussed on financial implications of their business decisions O Provide a way to hire specialized labors
Is it important for a company to follow a strict budget even though they may be experiencing phenomenal profits? Do you think that there will be a bias towards greed when creating the budget for this company? Explain. How does management greed influence budget decisions? Please consider each of the questions separately in this post. It is important for you to understand the value of the budget as a blueprint for the business – even in times of exceptional “good news”. It is also important to consider the role of greed within the budgeting process of the firm. Perhaps you might want to think about the budget as a communication to employees about what ownership and management believes is its focus. You might even want to see if any other of the exceptional “bad boys” in the business world were reflecting their greed even within their budgeting documents.
Describe how and why managers of companies use budgets. In doing so, cite three advantages of using budgets to manage businesses. Additionally, cite three mistakes that are often made by companies in setting their budgetary goals or standards. Provide an example of how each of these three mistakes can negatively impact the business.
Since budgets affect many people in an organization, they can have significant behavioural implications. Allowing people to participate in setting their own budget targets may improve commitment those targets but create the incentive to build budgetary slack into budget estimates. Required: Explain three disadvantages of budgetary slack from the point of view of The business unit managers who must achieve the budget Corporate management
What are some potential pitfalls in planning, budgeting, and financial forecasting and how could they affect an organization? What can a leader do to mitigate these? Is planning for future financial performance important to effectively lead an organization? Why or why not?
Explain the role and limitations of budgeting in business organizations. Support your answer with suitable examples.
1. Many companies face budgetary challenges on a continual basis. Two critical aspects that businesses lack when budgeting is effective controlling practices and monitoring. 2. Budgeting is essential to businesses, but it is not that simple to implement: What are some challenges and weaknesses that a firm may find in the budgeting process? What are some examples of effective monitoring and control practices, and how do they help address budgetary challenges? Discuss the role of the budgeting committee and its responsibilities.
Efficient and effective use of limited resources is the key to success in today’s economy. Assisting in the budget planning process is a major task for managerial accountants. Discuss the pros and cons of the two basic philosophies that organizations should follow to plan and develop their budgets.
Organizations rely on effective budgetary planning for successful financial performance. Explain how the roles of managers can assist organizations to achieve their budgetary goals.
Q.How does preparing the budget help Hazlett’s management team better manage the company?
Which one of the following is not considered to be a benefit of participative budgeting? When managers set the final targets for the budget, top management need not be concerned with the overall profitability of current operations. Managers are more motivated to reach the budget goals because they participated in setting them. Individuals at all organizational levels are recognized as being part of the team; this results in greater support of the organization. The budget estimates are prepared by those in direct contact with various activities.