Handbook of Budgeting

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Handbook of Budgeting

Format:  Hardcover,

846 pages

Publisher: John Wiley & Sons Inc

Publish Date: Feb 2012

ISBN-13: 9780470920459

ISBN-10: 0470920459

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Publisher: John Wiley & Sons Inc
Publish Date: Feb 2012
ISBN-13: 9780470920459
ISBN-10: 0470920459
Format: Hardcover
Number of Pages: 846
Shipping Weight (in pounds): 3.2
Product in Inches (L x W x H): 7.25 x 10.0 x 1.25
Walmart No.: 9780470920459

Chapter outline

Introduction To The Budgeting Process
Integrating The Balanced Scorecard for Improved Planning and Performance Management
Elements of a Balanced Scorecard
Use of Strategy Maps
Scorecard Cascading
Bringing It All Together
Integrating the Scorecard with Planning and Performance
Balanced Scorecard and Annual Planning
Continuous Strategic Management with the Scorecard
Strategic Balanced ScorecardBased Budgeting and Performance Management
Introduction: Why Most Companies Fail to Implement Their Strategies
Why a few Companies Produce Exceptional Results
Measure your Strategy with Balanced Scorecard
Balanced Scorecard-Based Budgets
Performance Management
Budgeting and the Strategic Planning Process
Definition of Strategic Planning
Planning Cycle
Strategic Planning Process: A Dynamic Cycle
Situation Analysis
Business Direction/Concept
Alternative Approaches
Operational Plan
Contingency Planning
Problems in Implementing Formal Strategic Planning Systems
Budgeting and Forecasting: Process Tweak or Process Overhaul?
Survey Methodology
Findings: Budgeting Process
Findings: Forecasting Process
Report Summary
Developing a Road Map for Change
The Budget: An Integral Element of Internal Control
The Control Environment
Planning Systems
Reporting Systems
Relationship Between Strategic Planning and the Budgeting Process
How to Plan
The Audience for Whom the Plan Is Designed
Strategic Business Planning and Its Role in Budgeting
Planning Differences among Small, Medium, and Large Organizations
Components of Strategic Planning
Management and Organization
Market Analysis
Formulation of Marketing Strategies
Operations Analysis
The Essentials of Business Valuation
Understanding the Valuation Assignment
Research and Information Gathering
Adjusting and Analyzing the Financial Statements
Three Approaches to Valuing a Business
Income Approach
Market Approach
Asset Approach
Making Adjustments to Value
Reaching the Valuation Conclusion
Moving Beyond Budgeting: Integrating Continuous Planning and Adaptive Control
Annual Budgeting Trap
Why Some Organizations Are Going Beyond Budgeting
Beyond Budgeting: Enabling a More Adaptive Performance Management Process
Climbing the Twin Peaks of Beyond Budgeting
Beyond Budgeting: Enabling Radical Decentralization
Moving Beyond Budgeting: An Update
Beyond Budgeting Round Table (BBRT)
Guardian Industries Corporation
Tools And Techniques
Implementing Forecasting Best Practices
Budgeting versus Forecasting
Implementing Forecasting Best Practices
Forecasting Best Practices: Process
Forecasting Best Practices: Organization
Forecasting Best Practices: Technology
Calculations and Modeling in Budgeting Software
Why Companies Use Budgeting Software
Calculations in Accounting Systems and Spreadsheets
Budgeting Software
OLAP Databases
Modeling and Budgeting
More Complex Budgeting Calculations
Cost-Accounting Systems: Integration with Manufacturing Budgeting
Decision Factors in the Selection Process
Cost-Accounting System Options
Costs Associated with a Product
Labor Cost
Variable Costing and Budgeting
Full Costing and Budgeting
Cost-Accumulation Procedures
Valuation: Actual versus Standard
Actual Costing
Actual Costing, Budgeting, and Cost Control
Standard Costing
Variance Reporting
Variances and Budgeting
Manufacturing Overhead
Manufacturing Overhead, Budgeting, and Cost Control
Break-Even and Contribution Analysis as a Tool in Budgeting
Break-Even Analysis
Price/Volume Chart
Contribution Analysis
CostVolumePrice and the Budgeting Process
Profitability and the Cost of Capital
A Market Gauge for Performance
Coping with the Cost of Equity
Building Company-Wide Profit Goals
Building Divisional Profit Goals
Information Problems and Cost of Capital
Budgeting Shareholder Value
Long-Term Valuation
Economic Value Added
Complementary Measures of Valuation
Budgeting Shareholder Value
Applying the Budget System
Initial Budget Department Review of Divisional Budget Packages
Divisional Review Meetings
Budget Consolidation and Analysis
Preliminary Senior Management Review
Final Revision of Operating Group Plans
Second Budget Staff Review of Operating Group Plans
Revised Consolidated Budget Preparations
Final Senior Management Budget Review Sessions
Operating Groups Monthly Submissions
Effective Use of Graphics
Budgets and Performance Compensation
Measures of Executive Performance
Structuring Reward Opportunities
Pitfalls of Linking Incentives to Budgets
An Optimal Approach
Adjusting Operating Unit Targets
Budgets and Long-Term Incentive Plans
Predictive Costing, Predictive Accounting
Internet Forces the Need for Better Cost Forecasting
Traditional Budgeting: An Unreliable Compass
Activity-Based Costing as a Foundation for Activity-Based Planning and Budgeting
Budgeting: User Discontent and Rebellion
Weary Annual Budget Parade
ABC/M as a Solution for Activity-Based Planning and Budgeting
Activity-Based Cost Estimating
Activity-Based Planning and Budgeting Solution
Early Views of Activity-Based Planning and Budgeting Were Too Simplistic
Important Role of Resource Capacity Causes New Thinking
Major Clue: Capacity Exists Only as a Resource
Measuring and Using Cost Data
Usefulness of Historical Financial Data
Where Does Activity-Based Planning and Budgeting Fit In?
Activity-Based Planning and Budgeting Solution
Risk Conditions for Forecasting Expenses and Calculated Costs
Framework to Compare and Contrast Expense-Estimating Methods
Economics 101?
Cost Behavior and the Relationship to the Budgeting Process
Cost Behavior
Break-Even Analysis
Additional Cost Concepts
Differential Cost Concepts
Maximizing Resources
Estimating Costs
Preparation Of Specific Budgets
Sales and Marketing Budget
Overview of the Budget Process
Special Budgeting Problems
Pertinent Tools
Unique Aspects of Some Industries
Manufacturing Budget
Changing to a Cost-Management System
Problems in Preparing the Manufacturing Budget
Three Solutions
Determining Production Requirements
Developing the Plannable Core
Obtaining Sales History and Forecast
Scheduling New and Revised Product Appearance
Determining Required Inventory Levels
Establishing Real Demonstrated Shop Capacity
Publishing the Master Schedule
A Total Quality Program—The Other Alternative
Inventory and Replenishment
More on the Manufacturing Budget
Determining Raw-Material Requirements
Determining Other Indirect-Material Costs
Determining Direct-Labor Costs
Establishing the Manufacturing Overhead Functions and Services
Quality Control Economics Review Questions
Plant Engineering Buildings and Equipment Maintenance
Review Questions
Floor and Work-in-Process Control Review Questions
Research and Development Budget
Relationship of Research and Development and Engineering to the Total Budgeting Process
Problems in Establishing Research and Development and Engineering Objectives
Developing a Technological Budget
Preparing a Departmental Budget
Managing a Budget
Coordinating Project Budgets
Administrative-Expense Budget
Role and Scope of the Administrative-Expense Budget
Methods Used for Preparing the Administrative-Expense Budget
Factors that Impact the Administrative-Expense Budget
Unique Issues Impacting the Administrative-Expense Budget
Tools and Techniques for Managing the Administrative-Expense Budget
Budgeting the Purchasing Department and the Purchasing Process
Description and Definition of the Process Approach
Role of Process Measures
Process Measures
Creating the Procurement Process Budget
Capital Investment Review: Toward a New Process
Context of the Revised Capital-Investment Review Process
Benchmarking Capital-Investment Review Best Practices
Revised Capital-Investment Review Process: Overview
Implementation: What Bonneville Learned in the First Three Years
Overview of the Leasing Process
Possible Advantages of Leasing
Possible Disadvantages of Leasing
Types of Lease Sources
Lease Reporting
Lease versus Purchase Analysis
Financial Accounting Standards Board Rule 13 Case Illustration
Negotiation of Leases
Selecting a Lessor
Lease-Analysis Techniques
Lease Form
Balance-Sheet Budget
Purpose of the Balance-Sheet Budget
Responsibility for the Budget
Types of Financial Budgets
Preparing Financial Budgets
Preparing the Balance-Sheet Budget
Adequate Cash
Financial Ratios
Analyzing Changes in the Balance Sheet
Budgeting Property and Liability Insurance Requirements
Role Risk Management Plays in the Budgeting Process
Types of Insurance Mechanisms
Role of Insurance/Risk Consultants
Use of Agents/Brokers
Self-Insurance Alternatives
Identifying the Need for Insurance
Key Insurance Coverages
Identifying Your Own Risks
How to Budget for Casualty Premiums
Budgeting Applications
Budgeting: Key to Corporate Performance Management
Future of Budgeting
Adding Value to the Organization
Corporate Performance Management
Developing a Budget Process Focused on Implementation of Strategy
Role of Technology
Overcoming Organizational Resistance
Planning and Controlling Implementation of a New System
Zero-Based Budgeting
Problems with Traditional Techniques
Zero-Based Approach
Zero-Based Budgeting Procedures
Decision Package
Ranking Process
Completing the Profit and Loss
Preparing Detailed Budgets
Bracket Budgeting
Application of Bracket Budgeting
Premises to Profi ts?
Developing a Tactical Budgeting Model
Bracket Budgeting in Annual Planning
Consolidating Income Statements
Summary of Benefits
Program Budgeting: Planning, Programming, Budgeting
Description of Program Budgeting
Framework of Program Budgeting
Program Structuring
Types of Analysis
Installation Considerations
Activity-Based Budgeting
Traditional Budgeting Does Not Support Excellence
Activity-Based Budgeting Defi nitions
Activity-Based Budgeting Process
Linking Strategy and Budgeting
Translate Strategy to Activities
Determine Workload
Create Planning Guidelines
Identify Interdepartmental Projects
Improvement Process
Finalizing the Budget
Performance Reporting
Industry Budgets
Budgeting For Corporate Taxes
Taxation of C Corporations
Personal Holding Company Tax
Net Operating Loss Utilization
Charitable Contributions
Taxation Budget
Federal Corporate Tax
Tax Return
Budgeting in the Global Internet Communication Technology Industry
Essentials from Earlier Chapters
Freemium Strategies
Volunteer Services
Enterprise Risk Management
About the Editor
About the Contributors

Book description

No other management tool provides the operational direction that a well-planned budget can. Now in a new edition, this book provides updated coverage on issues such as budgeting for exempt organizations and nonprofits in light of the IRS' newly issued Form 990; what manufacturing CFOs' budgeting needs are; current technology solutions; and updated information on value-based budgets. Controllers, budget directors, and CFOs will benefit from this practical "how-to" book's coverage, from the initial planning process to forecasting to specific industry budgets.

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