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Learning Outcome: Implement effective tools and techniques in documenting, presenting and justifying various budgets.
Finance 610: Budget Techniques and Analysis (Week 2)
A key to financial success is financial forecasting. Financial forecasting touches all aspects of the business from marketing, sales, operations, and treasury. Financial forecasting varies immensely from company to company. As such it is difficult to find solution to fit every scenario. However, even though the process may vary, most financial or strategic plans will consist of many departments performing to determined goals and or departmental budgets.
This assignment you will explore the budgeting process used in your workplace. (If you are presently not working you may consider a previous place of employment. Additionally, you may consider any nonprofit, neighborhood associations or religious organization in which you are affiliated.) Understanding the budget process in an organization is crucial to understanding the priorities and performance indicators.
Research your department budget process. Submit a paper discussing the following:
What are the main inputs of the department budget?
What are the constraints of the budget (ie. Cost increase capped at 3%, costs can only be a certain % of revenue)
What is the timeline in which the budgets are created and implemented? Are there multiple versions?
How is budget performance measured? (ie Ratios, Key Performance Indicators (KPIs), just make the numbers etc)
Who is involved in the budget process?
Does the budget involve the entire income statement and balance sheet? Or is the budget built for only for department expenses?
Was there any resistance to getting the information? Explain
Assignment length: 1000 words, quality research going beyond the textbook is necessary.
Please do not use any Wikipedia, Investopedia etc. popular sites in this class.