A budgeting is the quantitative expression of a period of a proposed plan of action by management for a specified period and an aid to coordinating what needs to be done to implement that plan. A budget generally includes both financial and nonfinancial aspects of the plan, and it serves as blueprint for the company to follow in an upcoming period. A financial budget quantifies management expectations regarding income, cash flows, and financial positions. Nonfinancial budgets are units manufa...
Investment appraisal (or Capital budgeting ) is the planning process used to determine a firm's expenditures on assets whose cash flows are expected to extend beyond one year such as new machinery, equipments, etc. It is also the process of identifying, analyzing and selecting investment projects whose cash flows are expected to extend beyond one year such as research and development project. 2- Importance of Investment Appraisal: Investment decisions are of vital importance to all companies....
Introduction: The capital budgeting procedure is an important aspect of financial management. However, more effort is involved than just the selection of capital projects. Northcott [1992], establish that "capital budgeting includes both selecting long-term investments and planning for their financing. As a part of the management control cycle of a firm, capital budgeting is about the management of capital outlays and equivalent operational cash flows". "In its simplest form, an investment de...
This report outlines a budget information problem based in Metroline Travel engineering and logistical function. The report also presents a discussion and analysis of a budget information problem with reference to the problem solving frame work. The project also includes the 4 P's within the marketing mix, limitations of incremental budgeting, 10 criteria which are proposed for good-quality information and a financial analysis of the logistical function overtime cost. These analyses are neces...
2.1 Introduction to Occupational Pension Schemes Pension provision in Ireland has evolved since the introduction of the old age pension over 100 years ago. It comprises of two main Pillars. The First Pillar is the Social Welfare system which provides a minimum income in retirement for all, and the Second Pillar consists of voluntary supplementary pensions. (Hutch, 2001:263) For the purposes of this study, focus will be on the latter Pillar. The Second Pillar comprises of three main types of p...
This report will focus on the role of the audit committee. Recent high profile failures such as Enron, Worldcom certainly brought the spotlight onto the role of the audit committee. This report will examine the role of the Audit Committee over the years and who exactly they are and what they do. Recent current issues that have highlighted areas of weakness with the audit committee shall be assessed and it will also look into finding out what remedies if any there have been to correct them. Me...
In the winter months, you will often find college students wearing parkas, pullovers, or long-sleeved t-shirts that sport the North Face label. Over the past four decades, North Face has established itself as a leading supplier of apparel for "run-of-the-mill" outdoors "types." The company also markets a wide range of apparel and sporting gear for more adventurous souls including mountain climbers, whitewater daredevils, ski bums, and the like. Despite North Face's prominence in the two marke...
Budgetary control is part of overall organization control and one of the most important tools used for planning, controlling and co-ordinating organizations. It is a tool to achieve financial control of organization and compare actual result for a defined period of time with the budgeted (flexed) results. Any differences are being investigated and corrective actions are taken to make sure that the actual activities do not deflect from the budgeted. Majority of world's most successful companie...
Discuss the reasons why we need a regulatory framework for financial reporting. What are the advantages and disadvantages of making accounting rules by law as opposed to using IASB standards? The body of rules which determine how financial accounts will be compiled in any particular situation are known as the Generally Accepted Accounting Principles (GAAP); these are drawn from a number of sources. The first of these are legal; the main sources of these include the Companies Act 2006, as well...
Absorption Costing and Activity Based Costing: Advantages and Disadvantages It is vital to have a proper costing system in place to offer services at competitive prices. This is all the more important in the current economic environment as the UK government is likely to curtail public expenditure in the future to rein in the fiscal deficit and this will increase the competition for public sector contracts. There are two important costing systems - absorption costing and activity based costing...