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Accounting-Budgetry Reports.


Guest n4e
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Anyone have any knowledge/experience of these ?

 

:snod:

 

If i posted one up would you be able to have quick scan over it and be bale to tell the problems with it ?

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I'll just stick it here as i always forget to check the PM bit at the top.

 

http://img21.imageshack.us/img21/671/budgety.jpg

 

The company operates a traditional budgetary control system. Operational directors are complaining that this does not meet their performance management needs.

 

Prepare an action plan for an Executive Board Meeting that will:

 

(1) Identify the problems with the traditional budgetary control report for Northern Food Company

(2) Describe the dysfunctional behaviour this creates in the company

(3) Determine how the budgetary control report could be improved to overcome the dysfunctional behaviour

(4) Explain and demonstrate how the balanced scorecard could be applied to improve broader performance management.

(5) Identify three key business risks and suggest suitable strategies for managing them

 

Is there anything usefull with regards to the questions that you would be able to say from looking at that report. Or even if you could recommend anywebsites or books for me to read that would help me understand it abit more would be a great help.

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I'll just stick it here as i always forget to check the PM bit at the top.

 

http://img21.imageshack.us/img21/671/budgety.jpg

 

The company operates a traditional budgetary control system. Operational directors are complaining that this does not meet their performance management needs.

 

Prepare an action plan for an Executive Board Meeting that will:

 

(1) Identify the problems with the traditional budgetary control report for Northern Food Company

(2) Describe the dysfunctional behaviour this creates in the company

(3) Determine how the budgetary control report could be improved to overcome the dysfunctional behaviour

(4) Explain and demonstrate how the balanced scorecard could be applied to improve broader performance management.

(5) Identify three key business risks and suggest suitable strategies for managing them

 

Is there anything usefull with regards to the questions that you would be able to say from looking at that report. Or even if you could recommend anywebsites or books for me to read that would help me understand it abit more would be a great help.

 

Very quickly....

 

The main problem with this type of budget is that it doesn't take the increased level of performance into account - whack the numbers into Excel and then see what the unit cost for food and labour etc are for budget and actual (i.e. total cost / No Meals prepared). Very quickly that will show you that on a unit basis food is up and labour costs are actually better than budget for example.

 

What this can drive is a climate where people are not concerned with bettering sales performance if their cost base will increase to drive this, basically all stick and no carrott! (alternatively if sales were down then costs might appear better than budget and therefore performance looks overly positive) Flexing your budget can help this as you can actually see if you are being more or less efficient in what you are doing.

 

Balanced scorecards look at every aspect of the business (well they do if they are any good!) not just the financials. They would therefore show (eg) sales performance, cost control, customer satisfaction, employee satisfaction etc - basically showing how well the business is doing as a whole and not just concentrating on the numbers - they can be used to influence peoples behaviour whilst acknowledging the competing factors for achieving the targets. Very good tools if used correctly.

 

Business risks, could be anything. Changing consumer tastes leading to a fall in demand, increased raw material costs/labour costs hitting profitability, or a curve ball such as a food poisining outbrake linked to a meal leading to chaos!

 

First port of call - Wikipedia (seriously), pretty good for the basics. Then just get yourself down to Waterstones or Blackstones (whatever the student book place is called) and flick through a couple of text books on Financial/business management. They all pretty much tell you the same story, just in a different way and its personal preference to how you like it told

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O0Cheers mate that is superb. I'll gte myself into town tomorrow to have alook throught the books aswell. Got to do a presentaion on it on Tuesday, and i'm not that confident like.  :lol: Have you studied this before, or work in it out of interest ?

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O0Cheers mate that is superb. I'll gte myself into town tomorrow to have alook throught the books aswell. Got to do a presentaion on it on Tuesday, and i'm not that confident like.  :lol: Have you studied this before, or work in it out of interest ?

 

Both! Studied Business and Finance and now a Financial Controller having been an auditor, so for the past 10 years this has been my life!

 

How long is the presentation? Use plenty of Power Point, always makes it easier

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O0Cheers mate that is superb. I'll gte myself into town tomorrow to have alook throught the books aswell. Got to do a presentaion on it on Tuesday, and i'm not that confident like.  :lol: Have you studied this before, or work in it out of interest ?

 

Both! Studied Business and Finance and now a Financial Controller having been an auditor, so for the past 10 years this has been my life!

 

How long is the presentation? Use plenty of Power Point, always makes it easier

 

Ah right nice one, i'm studying the same thing. Presentation is 20 minutes and 5 minutes of questions afterwards. I've got to do through marketing, HR mangement  dnd supply chains aswell though but I'm pretty confident with tha side of things. I'm going to try and go more into the finace side when I can choose what modules i do, so i need to get alot better at it than i am at the minute. :lol:

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