StudentShare solutions
Triangle menu

Income and expenditure budget - Essay Example

Not dowloaded yet

Extract of sample
Income and expenditure budget

In line with this the sales department has taken different cost cutting measures which will reduce our operations cost. Some of these measures include;
It is necessary to briefly explain the process of the budget administration. A manual that describes policies and procedures was used to guide on those issues. A small budget committee was formed with members selected from various functional areas of the department who have expertise in those areas. A high degree of participation has been encouraged in the process in realization that people will support that which they've participated in creating.
Below is the budget that describes the current sales figures and compares this with the projected figures for the 2007 financial year. It also indicates the various expenditures for the same periods.

SALES DEPARTMENT- SWANN COMMUNICATIONS.

Income and Expenditure Budget

Year 2006 Year 2007
(Forecast)
REVENUE

Sales $30,000,000 $35,000,000
EXPENDITURE

Staff Costs $11,535,000 $14,675,000
Running costs $11,245,000 $11,018,000
Investment capital $3,750,000 $3,162,000
TOTAL EXPENDITURE $26,530,000 $28,855,000
NET SURPLUS $3,470,000 $6,145,000



ROWS.

Revenue is described as Income arising solely from sales.

Expenditure includes the cost of labor (Staff costs)-these are disclosed separately because they represent 38% of total revenue, overheads, marketing and

advertising and administrative expenses related to sales. Also included is capital

investment in the sales department. These investments include automobiles to aid in

logistics and acquisition of a building to be used as a sales and marketing center.

Surplus corresponds with the target set out at the planning stage. It is the

amount after all expenses have been deducted.

COLUMNS

The year 2006 budgetary figures are not set in pro-forma but represent the

actual figures for the year ending in June 2006. The sales revenue is 30 million dollars.

and the corresponding expenses and surplus are as listed.

The projected budget for 2007 is a forecast of events as expected. It serves as

a guide to the feasibility of financial goals set for that period. It allows for amendments to

reflect on the ever changing situations.

Sales are projected to go up by 16% following the planned reforms in the

department

Staff costs are also forecasted to rise to $14,675,000 again due to the proposed

changes as listed in the planning stage.

In view of the revised cost cutting measures it is expected that running cost will

reduce by 2%.

Surplus will go up and this will be in line with the goals and objectives set by the

organization.
Works ...Show more

Summary

This budget will provide a glimpse of the preparation process starting with planning and also the examination of set targets for the sales department. Care has been taken to ensure that everything in the budget assists in the achievement of the organizations core values especially in the following key areas;
Author : jasonbeier
Income and expenditure budget essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Income and expenditure budget"
with a personal 20% discount.
Grab the best paper

Related Essays

Budget Analysis
The process of budget preparation is often complex as it requires inclusion of various aspects of the financial nature an organization. Budgets are mostly prepared during the late periods of a given financial year in order to depict the costs of the intended programs by the planning committees of given organizations The main aim of this paper is to answer questions of what factors and consideration are taken into account while preparing a budget and future prospects of the budget.
5 pages (1250 words) Essay
Different levels of income and expenditure

The author states that the basis of taxation on income from salary is on due basis. So salary due to an employee is taxable irrespective of whether he actually receives it or not. There are certain allowances given to employee which are taxable like dearness allowance, dearness pay, additional dearness allowance.

9 pages (2250 words) Essay
Budget Plan
Budget Plan Analysis. This document provides a flexible budget for Microsoft Company and further studies growth rate, sales, interest and tax burden of the company. It further analyzes the performance of the company with its peers and competitors. In order to regulate the budget plans the company follows two major types of budget plan.
3 pages (750 words) Essay
Preparebudgets and financial plans
One key Goal is to increase market share from the current 23% to 30% by 2010. This of course involves increasing client base. The sales department intends to achieve increased sales by use of the following strategies; The organization has another
3 pages (750 words) Essay
Compare and contrast perfect competition and monopolistic competition. Also Explain how equilibrium is determined in the Keynesian Income Expenditure
The number of firms in Monopolistic competition is fairly large. Under the Monopolistic competition, the firms sell differentiated products. Product differentiation may be real or imaginary.
2 pages (500 words) Essay
City Budget

The paper tells that the current year’s expenses will increase due to increasing cost of living. This understanding is important in incorporating the new changes that need to be included in the current budget forecast. The acknowledgment of the need to identify varying revenue sources benefits the future budgets by making them progressive.

2 pages (500 words) Essay
Analyzing a Budget
[Sullivan 2003] Thus, by so stating, the period of the above budget has clearly been stated. It is also evident that it is accompanied with specific monetary terms. Good budgets often have specific monetary terms accompanied with them (Sullivan 2003). As
2 pages (500 words) Essay
Budget vs Comprehensive Annual Financial Report (CAFR)
The CAFR is a significant document that comprises of different financial reports that a budget lacks and the budget is even a portion of the several financial reports that
1 pages (250 words) Essay
Budget, Income, and Expenses:
Secondly, the organization reviews purchasing procedures of the organization. There are authorization processes to control spending limits and the number of people allowed to purchase. Thirdly, the agency analyzes the
2 pages (500 words) Essay
EXPENDITURE ON MOBILE PHONES
Increase in income positively affects the disposability and the real income of the consumers. Thus, all the factors above influence the consumer decision making regarding purchase of mobile phones and various
6 pages (1500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation