Premium Essay

Impt

In: Business and Management

Submitted By uche
Words 904
Pages 4
IMPACT OF BUDGETING ON WEALTH CREATION
INTRODUCTION
Budget, as we know is a formal business plan. It is a detailed plan showing how resources will be acquired and used over some specific time interval. Budgeting provide definite expectations that are the best framework for judging subsequent performance. Budgeting aids mangers in coordinating their efforts, so that the objective of the organization match the objective of its parts.
Having plans and goals for your financial future is essential for any person’s financial and general well-being, whether they are employed in a business, or run a business themselves. A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms
Budget and wealth creation concepts
As we all know that a budget is a financial plan that set goals and target that governor the activities of the company.
Wealth on the other hand, is the abundance of valuable resources or material possessions. All wealth is transient. The United Nations definition of inclusive wealth is a monetary measure which includes the sum of natural, human and physical assets. Concepts of wealth also vary across time. Modern labor-saving inventions and the development.
The impacts of budgeting on wealth are: 1. It control resources 2. It communicates plans to various responsibility center managers. 3. It motivates managers to strive to achieve budget goals. 4. it evaluate the performance of managers 5. it provide visibility into the company's performance 6. For accountability
Wealth is a completely subjective concept. It requires that everyone involved share a common perception of the value of a…...

Similar Documents

Premium Essay

Pestle Analysis

...own PDP. The traditional use of PESTLE for organisational change is as follows: 1 List external PESTLE factors for the organisation - may need to brainstorm and have expert knowledge of the organisation and/or the world outside the organisation for this. 2 Identify the implications of each PESTLE factor for the organisation. 3 Decide the importance of the implications of the external factors – ranks or rate them. Normally this involves assessing their: impact over time, impact by type (positive or negative affects) and impact by dynamics (ie is the significance/importance of the implication increasing, decreasing or remaining unchanged). 4 Rate the importance of the implication to the organisation (eg using: critical, very impt, impt, significant, unsignificant). This may be further refined by ranking the likelihood of it happening (eg using: will happen, extremely likely, very likely, likely, unlikely, remote chance of happening, will not happen). 5 Scenario building. Or ‘what if..’ Used to develop scenarios of different alternative futures for ht organisation....

Words: 669 - Pages: 3

Premium Essay

Katangian Ng Modernong Babae

...as Benny Chin Ortega as Eagle Patrick Libao as Bok Gabby Bautista as Batik SUMMARY: This 3 siblings have a store/ shop where-in all their selling goods are came from stealing.,Because of this, they already mastered the act of stealing like AKYAT-BAHAY, SHOPLIFTING, etc. And the manager of this shop is a young boy at the age of 7, he can manage the shop accordingly. One day his elder sister & brother want to change their bad lifestyle in a good & honest work/job. And because of their aunts letter who are in the jail ,they have a chance to change into a good person, but this young boy doesn’t like the opinion of his sister & brother..While they have their impt. Conversation.the police came to arrest them bec. Of some crimes they did, this young boy said that they kidnap him, and he told this to safe him from tha policeman..While he is emerged, his brother & sister are arrested. REACTION: This is the story that I appreciate most , it is bec. Even if Batik isw only a 7 year old boy he can as older as its sister & brother. And I impressed the way Batik deliver his role . The whole-play is good and interesting. STRANDED(VINCENT TANADA) CHARACTERS: Monique Azzereda as Debbie Mar Miranda as Wally Jordan Ladra as Senedy Kevin Posadas as Pepper SUMMARY A childhood friends decided to have a trip......

Words: 791 - Pages: 4

Premium Essay

Marketing in Asia Chapter Five Notes

...Firms identify and capitalize on both attributes to create best value * Consideration set: group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware * Evaluative criteria results in consideration set | 4. Purchase Decision(buying value) | * From whom and where? * Simultaneous evaluation of both pdt attributes and seller characteristics * When? Sale, rebate, salesperson persuasiveness, time pressure, financial circumstances | 5. Postpurchase Behaviour(value in consumption or use) | * Dissatisfied: pdt deficient (design change?) or consumer expectations too high (advert oversold features) * Sensitivity to customer’s consumption experience extremely impt in a consumer’s value perception * Satisfaction affects repeat-purchase behavior (financial impact) and consumer communicatione.g. Nissan calls car owners after they have serviced their cars at its service center to monitor customers’ satisfaction with their services * Cognitive dissonance: postpurchase psychological tension or anxiety (usually aft choosing from two or more highly attractive alternatives * Ads or follow-up calls from salespeople to comfort/reaffirm buyers that they made the right choice | Consumer Purchase Decision Process – Influences Type | Influence | Elaboration | Situational | Purchase task | * Reason for engaging decision in the first place | | Social surroundings | * Other people......

Words: 1924 - Pages: 8

Premium Essay

Business Strategy

...Difficult to provide product substitutes to long-time loyal customers j. Premium price of RMs makes suppliers more willing to make investments in high quality goods k. Risks – customers may decide price is too high (esp if cost leader learn how to add differented features without raising price), differentiation source might cease to create value (impt to bring new and improved products to the market/innovation), customer may compare to performance of lower cost alternative, could be counterfeited 3. Focused strategy – only difference is we’re looking at a narrow market segment – action plan developed to produce goods/services that serve the needs of a specific market segment. Cater to a particular buyer group , a specific segment of product line (like prof vs. regular ppl), particular geographic markets l. Cost leadership –action plan to develop g/s for a narrow market segment at the lowest cost – IKEA – focus on lowering costs and understanding cust needs m. Focused differentiation – action plan to develop g/s that a narrow group of customer perceive as being unique in ways that are impt to them – LV – must perform value chain primary and support activities that create more value than competitors can create for a narrow group of target custs n. Risks – competitors may outfocus, custs may switch to target market, needs might change and become similar to broad market 4. Integrated cost leadership/differentiation – action plan......

Words: 2603 - Pages: 11

Premium Essay

Reviewer in Marketing

...experience 18. family – most impt cust buying org 19. Industrial – prod bought by indiv for further processing 20. Innovators – 1st adopters 21. labeling – printed info 22. learning – permanent changes 23. lifestyle – person’s pattern of living 24. line filling- adding prod w/in current range 25. line stretching – adding prod outside of current range 26. logistics/supply chain - Planning, implementing and controlling the physical flow of goods, services and related information from points of origin to points of consumption to meet customer requirements at a profit. 27. mass marketing - No segments and single marketing mix. 28. motivation – strength of the drive toward an action 29. optional-product - separate options available for the main product 30. packaging – designing and producing 31. penetration pricing - Low price to gain maximum market share. 32. Perception – process of interpreting info 33. personal  34. Physiological most important need 35. price – amt of money/sum of values 36. price skimming - High price to reap maximum profit from early adopter segments. 37. Product – anything that can be offered 38. product bundle - Combining several products and offering the bundle at a reduced price 39. product line - Group of closely related products because they function in a similar manner and are sold to similar segments with similar marketing mixes. 40. product position – the way the product is defined by cons on impt attributes 41. psychological......

Words: 444 - Pages: 2

Free Essay

Organizational Behaviour

...inequity, they want to FIX it…they are motivated to engage in behavior to restore some sense of equity. · Equity theory predicts that to fix it, they will try to change their outcomes (stealing) or inputs (working less), or by quitting, or to act against the referent. o Acting against the referent means that you encourage the referent to change their situation so that you don’t feel inequity. o They may also change referents – People may pick a referent that gives a better outcome (makes you feel more equitable). o In a state where over-reward exists, people don’t seem to be as perceptive to thisbut they do tend to work a little harder. The other way to restore equity is to return or decline some of the reward. o Procedural justice is impt. People less likely to steal and do other things if you go about bad things the right way (like showing them that you care) o People seek to change the inputs and/or outputs so that they can reduce their felt inequality. o People tend to rationalize their inputs and outputs. They might think (I work harder so I’m not over rewarded, I’m justly rewarded).           § Expectancy Theory (VIE theory) o He thinks this is the most practical theory o States there are 3 links in motivation: § Expectancy · IF I do this, will I be able to perform successfully § Instrumentality · If I perform, will it lead to a particular outcome § Valence · The perceived value of the outcome o But if any of these links......

Words: 910 - Pages: 4

Premium Essay

Toolbox

...TOOLBOX: 1) Inventory Management - Inventory Turnover Ratio = Costs of Goods Sold/ Inventory If inventory turns over 6 times, how many days does it stay on the shelves or in the warehouse? These are annual figures: 365/7 = 60 days on the shelves. Need a better specific Mission Statement. 2) Costs that do no change with volume of output are called -Fixed Costs Costs that change when volume changes are called -Variable Costs 3) Fishbone Analysis 4) Low Urg/Low Impt – Low Urg/High Imp High Urg/Low Impt – High Urg/High Imp 5) Present Value and Future Value PV x C^n = FV When comparing investments....pick the one that has a larger present value. 6) PORTER 5 Porter 5 does not cover the opportunities part of the SWOT ad Market Growth Potential. 7) HILO METHOD: Finds Slope (FC, VC) [(Total Cost From Later Year - Total Cost from Year Before Later)] / [(Units from Later Year /-Units from Year Before Later)] = VC FC = Total Cost – (VC)(UNITS) 2012 Units: 800 Total costs: 7000 2011 Units: 500 Total costs : 6100 [7000/6100] / [800/500] = $3/unit ( VC 3(800) 2400 ... 7000-2400 FC= 4600 8) BREAKEVEN POINT BE = [FC/[P-VC] BE ( Given a total profit ) = [FC+TP]/[P-VC] QUESTION: How many units must you sell to earn $100 000 in profit 4600+ 100 000/ [5-3] = 104600/2 = 52 300 9) FINANCIAL STATEMENT BALANCE SHEET - ASSETS = LIABILITIES + EQUITY INCOME STATEMENT- NET INCOME = REVENUE MINUS EXPENSES CASH FLOW......

Words: 329 - Pages: 2

Free Essay

Cheney's Law

...Cheney’s Law -Cheney found GWB to help him -> GWB brought in Alberto Gonzalas (Fredo)- top lawyer -Gonzales had no experience in govt law; David Addington dominated Gonzales -9/11 Cheney said the country should be ruled by men not laws; They wanted to gather as much power to the president as possible; John Yoo (go to guy who says yes to everything the VP said to do ) -John Yoo worked in office of legal council (most impt govt office you’ve never heard of) -Democrats controlled Senate and they did not want to give power to the President; Saw it as completely unchecked president authority -> Congress limited the President -Secret memo signed by John Yoo; Memo said in times of need the president could do whatever necessary -Behr Richard Prosper- war time prosecuter in Rwanda; brought lawyers to come up with a recommendation to deal with the prisoners -Colin Powel/Condeliza Rice/Lawyers had all been kept out of the loop -Conservative Law Professor Jack Goldsmith joined the Defense Department; went to Guantanamo -> trial on what would happen to prisoners of war; Addington and Lawyers okays interrogation on POW -Bybee Memo said the President could do whatever necessary to fight war on terror -Yoo’s definition of torture-intentional inflicting pain on someone in order that was equivalent to organ failure -American detainees- conditions should change -Goldsmith and Yoo were rising stars; co-authored magazine; OLC head resigned and John Yoo didn’t get the job;......

Words: 610 - Pages: 3

Premium Essay

Nueropsychology

...importance of right hemisphere for spatial relations - structural: look at structures - functional: look at which areas are metabolically active - PET - positron emission tomography - have you sniff a radioactive sugar/oxygen, this will go into brain, and the part of the brain that’s working will be metabolically active ATTENTION - talk about it in relation to aging - when you get older, your ability to direct attention & filter will deteriorate - it’s a function of the frontal lobe EMOTION & MEMORY - amygdala is very close to the hippocampus - amygdala associated w/ negative emotions - emotion influences how we incorporate memory SEIZURES - not different kinds of seizures - why we talked about seizures is impt - role of seizures,,, interrupts memory consolidation, memory buffer SLICES - know why the slices are called what they are - be able to look at a slice and recognize what slice you’re looking at - SM - sensorimotor RECOGNITION MEMORY - ex: multiple choice, or you run into someone and you recognize them but don’t know name - you recognize something but you don’t have to recall it on your own... like in multiple choice (not forced to recall) REPETITION PRIMING - doctor - nurse - barn - hay - recall second word faster when you learn it with a pair or having that word over and over - things that you don’t know that you know - example of implicit memory ***NONVERBAL TASK*** - may look similar b/c Wernicke’s......

Words: 4014 - Pages: 17

Free Essay

K; J; Lkj

...1)Sources of Industrial Growth a)Industrial Technologies i)Most impt tech development was new iron + steel production techniques- Henry Bessemer and William Kelly invented process to turn iron to steel, possible to produce large quantities and dimensions for construction, RRs ii)Steel industry emerged in Pennsylvania and Ohio (Pittsburgh notably)- iron industry existed, fuel could be found in PA coal iii)New transportation systems emerged to serve steel industry- freighters for the Great Lakes, RRs used steel to grow + transported it (sometimes merged w/ one another). Oil industry also grew b/c of need to lubricate mill machinery b)The Airplane and the Automobile i)Development of automobile dependent upon growth of two technologies: creation of gasoline from crude oil extraction, and 1870s Eur development of “internal combustion engine”. By 1910 car industry major role in economy ii)First gas-car built by Duryea brothers 1903, Henry For began production 1906 iii)Search for flight by Wright Bros lead to famous 1903 flight. US govt created National Advisory Committee on Aeronautics 1915 to match Eur research c)Research and Development i)New industrial technologies lead companies to sponsor own research- General Electric established first corp lab 1900, marked decentralization of govt-sponsored research. At same time cnxn began btwn university research + needs of industrial economy- partnership btwn academic + commercial d)The Science of Production i)Principles of......

Words: 1797 - Pages: 8

Premium Essay

Budget

...partial exemption ❑ credit ❑ refund or rebate ❑ freeze ❑ use-value assessment ❑ classification ❑ circuit breaker ❑ deferral b) indirect – works outside the property tax system; may or may not affect the total property tax levy Chapter 7 – Nonproperty Taxes MVIL – most widely used although not the most productive in terms of revenue Sales tax – the most impt single local nonproperty tax – followed by income tax A diversified tax base promotes equity b/c it can capture revenues from individuals who can escape some taxes but not others. Also promotes efficiency b/c it reduces distortion of economic decisions resulting from over-reliance on any particular tax. Diversification keeps all tax rates lower than they would otherwise be. Offers local gov’t the same advantages that a diversified portfolio of financial assets offers investors. Drawbacks to diversification: nonproperty taxes often cause greater distortion of economic decisions than the property tax; and, additional local taxes create additional costs of administration and compliance. Rationale for nonproperty tax: impt evaluation criteria is incidence – who actually bears the burden of the tax – incidence merely tells who does pay – it does not tell who should pay. Economists suggest two principles who should pay: 1. benefit principle – a citizen’s share of the tax burden is proportional to the benefit he receives 2. ability to pay principle – widely interpreted to imply a......

Words: 9179 - Pages: 37

Premium Essay

Users Buying Behaviour Towards Perfume

...others2. Rank sub- brand of perfume according to your preference? („1‟ for most preferred and„10‟ for least preferred). (Do not repeat any of the rank order.)(a) Dairy milk (b) 5 star(c) Perk (d) Temptation(e) Silk (f) Kitkat(g) Munch(h) Milky bar(i) Barone(j) Milk perfume 3. How much importance do you give to the following factors when you purchase aperfume? (Tick in the desired column).Factors very least verylessImportant Important Normal ImportantImportant(a) Flavor/taste(b) Price(c) Packaging(d) Brand(e) Image(f) Quantity(g) Punch line4. Which factor of perfume do you give more importance?Factors very least veryImportant Important Normal Important less impt(a) Hard(b) Nutties(c) Crunchy(d) Chew(e) others5. Which pack of perfume do you normally preferred?(Give the rank of perfume pack according to your preference „1‟ for most preferred and„3‟ for least preferred). (a) Small(b) Big(c) Family pack 6. Which promotional offer attracts you most? (Give the rank of promotional offer according to your preference „1‟ for most preferredand „5‟ for least preferred) (a) Free gifts(b) Price offer(c) Punch line (d) Brand ambassador(e) Any other7. Which of the factor affect yours purchased? (Give rank to the factors according to your preference „1‟ for most preferred and „5‟ for least preferred)(a) Advertisement(b) ......

Words: 1428 - Pages: 6

Premium Essay

Project

...Content 1. Company info • Brief coy history • Current coy’s standing - Share price, organization breakdown / subsidiaries coy, Mainstream revenue, Vision and mission, world wide economy in regards to the same industry. (Porter’s Five Forces Framework, financial ratios to supplement the quantitative analysis, Balance sheet, P & L) • Compare with competitors – with in Porter’s five. • Current issues facing the company, the industry it operates in, and estimate the impact of the issues on the company’s future earning. 2. Estimation of the value of the company’s shares Impt Note : Define assumptions Dividend valuation model (DDM • CAPM • estimate beta adjust using appropriate methodology • Justify proxies used for the risk-free rate and the market portfolio. Indicate any advantages or disadvantages if there are any. • estimation of the expected market risk premium • Free cash flow to equity model • Price/Earnings Ratio model • Price/Book Value Ratio model • Net tangible asset backing model Equity Risk Premium: • Use historical returns, with the difference in annual returns on stocks and bonds over a long time period comprising the expected risk premium, looking forward. • Assume that expected return on the market portfolio is related to a Macroeconomic variable, e.g., GDP. Then use the expected changes in the macroeconomic variable, with appropriate probabilities to estimate expected return on the market portfolio. Subtract the RFR from the expected......

Words: 342 - Pages: 2

Premium Essay

Mis 3360 Guide

... which one is optional? Class notes *What is Heuristic evaluation? (Understand the steps and the process) if someone says steps, know those study objectives The rest of this chapter is the “older stuff” -starts from navigation deisgn – input design –output design- new things such as mobile, social media, and … -know the navigation design Types of messages pg 386 Input design -online vs batch processing -know what the difference is. -Types of inputs -output design - understand what those uses are for. -what is the effect of the biased and unbiased graphs -multilingual -what does content awareness mean? -three fundamental parts of user interface - navigation,____,status -Why is content awareness impt -what is white space and why is it important *aesthetics *how much white space, and what is the rule of thumb Do the key words chapter 11 Physical architecture -understand the different physical architecture components -pieces of the puzzle. What are the pieces? How many did we have? -what are the architectural components 463-designing documentation structure table on pg 472!!! -purpose of an acceptance test and what it is -why is testing important? Pg 497 Key terms Questions are in the same order of the chapter...

Words: 460 - Pages: 2

Premium Essay

Segmentation

...cost of reaching the segment – accessibility 5. compatibility with the organization’s objectives & resources Segmentation – targeting – positioning 6 POSITIONING ISSUES Product positioning: The place an offering occupies in the minds of consumers relative to competitive products Product repositioning: Changing the place an offering occupies in the minds of consumers relative to competitive offerings HOW IT WORKS 1. head-to-head – competing directly with other market offerings along similar attributes in the same target segment 2. differentiation positioning – less competitive, smaller market niche in which to locate a brand PERCEPTUAL MAPS 1. identify important attributes for a product class 2. judge existing brands re these impt attributes 3. ratings of an ‘ideal’ brands attributes Segmentation – targeting – positioning 7 ...

Words: 401 - Pages: 2