StudentShare solutions
Triangle menu

Finance - Essay Example

Nobody downloaded yet

Extract of sample
Finance

For this to effectively happen, all the staff should have a sense of ownership of the budget being put into use. In order for the management to efficiently perform the necessary management functions, the use of budgets becomes very fundamental (Hilton, 1994). Therefore, budgets are mostly used in the planning process. It therefore needs to be employed appropriately so as to facilitate communication and act as a motivational factor amongst the employees. In addition, budgets are also used as for control and performance evaluations and measurements. Apart from all that, budgets provide a target for each member to achieve as well as a focus for their efforts (Hopwood, 1974). It therefore calls for participation to be allowed so that those involved in budget setting can be allowed to freely discuss and be more receptive to the decisions made so that they can easily corporate in achieving the budget goals. One very important issue that Charles Ltd. should know is that; the way in which the budgets are administered to the appropriate staff determines their effectiveness to help achieve the organizational goals. Janet was not made part of the group when setting the budget with which she was served, therefore she could less understand the importance of this budget as well as its usefulness. She ought to have been part of this budget from initiation for him to adopt it without any problem (Lamberton & Harvey, 1991). Instead, she was made to adopt a budget of which she did not feel part of its ownership from the start. It is therefore important for Charles Ltd. to recognize that budgets in an organization have two important uses; one, they are used as a forecasting tool to measure the performance of the company in a particular period of time, especially in a year, and the second use is where the budgets are used as a yard stick of the managerial performances. However, it is usually argued that, by using the budget for measuring managerial performance, it can as well be used as a tool for control in the organization (Schiff & Lewin, 1978). The current budgetary reporting system considers variances that evidently show both the efficiencies and inefficiencies of the budget. This is determined by considering whether the variances are either favorable or unfavorable. On several occasions, the variances seem unfavorable as can be explained by the differences between the budgeted and the actual figures in the table. The notes 1 and 2 also indicate that the variances are unfavorable. Considering that the budget report was made by the directors without making Janet and other supervisors and managers part of its setting, it becomes very difficult for these other staffs who were not involved to just accept and adopt it. Instead, the result would be that most of the staff would use the inefficiency side of the budget report to criticize it. Taking an example of Janet, she says she has no time for the paper work, maybe because she might not have been used to the this system of budgetary reporting. By considering the report inaccurate and unfair, she may be feeling that the inefficiencies might have arisen due to the ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Finance Essay Example | Topics and Well Written Essays - 2500 words - 1”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/115887-finance
(Finance Essay Example | Topics and Well Written Essays - 2500 Words - 1)
https://studentshare.net/finance-accounting/115887-finance.
“Finance Essay Example | Topics and Well Written Essays - 2500 Words - 1”, n.d. https://studentshare.net/finance-accounting/115887-finance.
  • Cited: 0 times

Summary

Budget Reporting System Course: Instructor: Introduction For the management to communicate the appropriate organizational goals to the appropriate staff/managers so that they can facilitate, coordinate and control performances in the various sections of the organization in order to meet certain planned organizational goals and objectives, proper budgeting must be put in place…
Finance
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finance"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Finance
The Independent Commission on banking also known as Vickers Commission was also asked to consider competition in the UK banking sector. The UK government published its formal response to the Vickers Report in 2011 and has agreed with most of the recommendations made by the Vickers Commission.
4 pages (1000 words) Essay
Finance
This process of international expansion is made possible by the business corporations depending on certain premises like conducting trades related to exporting of commodities to foreign nations, through rendering investment in business units created in foreign territories, opening up of new production units in the foreign locations
4 pages (1000 words) Essay
Finance
Finance Name Institution Table of Content Introduction 3 Main Body 4 Conclusion…8 References…9 Appendix…10 Introduction The performance of a company is essential towards its growth. There are various internal, as well as external factors that have a great influence on the success of a business (Albert, 2008).
5 pages (1250 words) Essay
Finance
Some countries cooperate and jointly develop oil export capacity, while others focus on attracting enough investment to create their own routes. The oil and gas industry in the Azerbaijani is controlled by the major company State Oil Company of the Azerbaijan Republic (SOCAR).
5 pages (1250 words) Essay
Finance
In United Kingdom all operational financial institutions are incorporated under the “Financial Services Authority” which is a self-governing non-legislative organization, aided by the legal powers under the “Financial Services and Markets Act
10 pages (2500 words) Essay
Finance
Due to this systematic risk, the values of investments can be turned down and all this can occur because of financial transformation or other incidents that can affect the market to a great
10 pages (2500 words) Essay
Finance
In this regard, it is therefore contemplated that there must be an alternative system that can be relied in order to achieve the relative stability in the financial markets. Though Islamic
1 pages (250 words) Essay
Finance
The time for money value in this article is represented through the rating of risk free in a formula compensating the investors placing for money in a given time in an investment. This
1 pages (250 words) Essay
Finance
It is calculated as difference close price on the date of listing and offer price of issue expressed as percentage of offer price of issue. In the US market, the short
10 pages (2500 words) Essay
Finance
The two companies have poor current ratios and while this would be an indicator of inability to meet short-term obligations, it is less of a threat to a long-term investment approach. Current ratio is also just a comparison of current assets and
3 pages (750 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Finance for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us