Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Budgeting
This budget is a static budget. The variable components are based on the number of students, and in this budget the amount of students is assumed to be fixed throughout the year. The budget does include three different student levels, but this reflects sensitivity analysis, not a flexible budget that changes over the course of the year. To make the budget flexible, the school would need to make changes to the different elements of the budget as the school year progresses. That is entirely possible the way this budget is structured, but the possibility of converting it to a flexible budget does not make it a flexible budget.
The total revenue per student excluding grants is taken by adding up the non-grant revenues per student: $6,063.06
The total expenses per student depends on how many students. At the 120 student assumption, total expense per student are $4,518; at the 100 student level the total expenses per student are $5,283; and at the 66 student level the total expenses per student are $7,646.
4. It appears that most of these expenses are necessary. Technology enhancement might be something that is not necessary. Advertising can be cut, but that might affect the number of students. Grass removal might not be...
Many items could, however, be subject to reduction.
5. The school is viable. The (non-grant) revenues per student are $6,063.06. Variable expenses per student are $654.50, leaving a contribution margin of $5,408.56. The total fixed costs are $470,817. This gives a breakeven point of 87.05 students, or 81 students.
6. There are a few benefits of preparing this budget. The first is that it allows the school to determine its breakeven point. The school also has the ability to adjust levels of expenses and subject the budget to a sensitivity analysis (the enrollment figures are a form of this as well). The budget gives management information on what are the revenue and cost drivers at the school, allowing for better decision making. These budgets also help to provide mechanisms for variance analysis, and they are used to help the school make better choices about its purchasing and other expenses.
7. This budget is likely to be used for a control function. The budget provides levels by which actual performance can be judged. When managers know what the deviations are, they can focus on finding ways to ensure that negative…
Budgeting Kudler Fine Foods Budget The budgeting here will be from the absorption approach which is a budgeting process that considers all business overheads to be the product cost which eventually become an expense in the form of manufacturing cost of the goods and are sold as sales take place. Budget for Kudler Fine Foods Item Revenues (Net sales) $19,921,220 $22,092,633 $24,500,730 Cost of goods sold (less ending inventory) $13,307,028 $14,570,893 $15,879,815 Total expenses $1,928,722 $2,047,656 $2,177,855 Net operating income $5,477,292 $5,474,084 $6,443,060 Integrative Marketing Agency (2010). The growth rate of Kudler
Budgeting High Quality Sources Innovation in budgeting models and approaches Innovation in budgeting models and approaches While budgets are the point of concern today not only for nations, organizations and families but also for individuals, it is vital to understand what budgeting is and how it is used, what are different models of budgeting and how these can be innovatively improved. Budgets are the quantitative representation of tasks. The budgets tell how an activity
Budget Planning and Controlling Benefits of a Realistic Budget A budget is delineated as a written statement of the plans for management for a particular period of time, conveyed in financial terms. A realistic budget will benefit the owner of Babycakes as compared to having no budget at all. One of the benefits is forecasting. A realistic budget will assist the owner of Babycakes in projecting yearly expenses and also helps in
Breakeven Analysis Sony Flexible Budget Analysis Sony is a company that has long dominated the electronics market. However, in recent years, it has seemed to loose its primary grip over the market. Still, examining the financials of 2013, one can see that there have been new advancements in growth, especially in regards to net income, operating income, and financial and mobile sales revenues. After several years of disappointing sales, Sony has seen some
budget components (Policy Document, Financial Plan, Operating Plan, Communications Device), rank them in order of importance in your opinion and justify your rank order. Rank 1: Policy Document: The Policy Document is synonymous with a Budget Document. The budget document can be a line item detailed listing of every expenditure for every department within the government operation. The document conveys the policies and procedures of the administration and outlines its
Budget is the estimation made by a business at the beginning of the financial period. The budget prepared at the beginning will not reflect the exact amount of resources that the business will incur for the entire financial period. The budget prepared at the beginning might be less or more as compared with the actual resources, the business will spend for the whole year. As the year begins, the business