Budgetary Planning Essay Example | Topics and Well Written Essays - 500 words

Budgetary Planning - Essay Example In the meantime, if the employees find it difficult to attain the targets then it might instead be de-motivating for them (University of Gothenburg. â€Å"Budget-A Perfect Management Tool†). Organizations can allocate certain percentage of budget in order to motivate the employees when they are performing well in an organization. For instance, the company can arrange for travel program for the sales support team that attains the target on a stipulated period of time. In such cases, the company will bear the complete expenses of the employees sent for travelling along with the family (University of Gothenburg. â€Å"Budget-A Perfect Management Tool†). Such kind of budgets can assist in motivating the employee to a great extent and thus can assist the organization to attain its objectives within a short period of time. It is to be remembered that such budgets help to augment the performance of the employees and thus increase their productivity as well. Budget is one of the significant sources of motivation for the employees. Hence, it is crucial for an organization to plan budgets in a way so that it can be utilized for the purpose of motivating the employees. It is to be remembered by the employers that the budgets will have no motivational effects unless they are accepted by the managers involved as their own personal target. In such circumstances, the employer needs to make the managers involvement compulsory in such activities. It is a well known fact that the demanding budgets are seen as more applicable in comparison to less difficult targets. However, negative attitudes can result in if they are viewed as too complex. Therefore, in such circumstances, allocation of budget needs to be done properly so that it serves as a motivational tool. Acceptance of budgets is facilitated when good upward communication exists. The use of departmental meetings can be quite helpful in encouraging the managers to accept

Managerial Accounting and Organizational Controls Essay - 1

Managerial Accounting and Organizational Controls - Essay Example Under the elimination of costs, one of the secretaries under the administrator would need to be eliminated. However, security would not be affected because it is a factor that is very necessary within a mental health agency. Dr. White could begin preparing for reduced budgets by, first, advising the present staff of the proposed eliminated in costs. She should advise them that the costs are necessary in order to maintain the operation and well-being of the agency. Additionally, Dr. White could also review the resumes of the present employees and interview them again to derive more of their skills. These skills could be used to replace the services that will be eliminated by the proposed budget cuts. Under the traditional method, the cost of advertising and warehouse expense allocated to both of the two major businesses, one manufactures and sells unicycles for commercial use in circuses, etc. and the other sells bicycles to the public, was 2.5 million for the cost of advertising and 1.5 million for warehouse expense. Since the business that manufactures and sells unicycles for commercial use yields a greater profit (150 million) than the business that sells bicycles to the public (20 million), it is recommended that the majority of the cost of advertising and warehouse expense be allocated to the business that manufactures and sells unicycles for commercial use. ... Part B: Under the traditional method, the cost of advertising and warehouse expense allocated to both of the two major businesses, one manufactures and sells unicycles for commercial use in circuses, etc. and the other sells bicycles to the public, was 2.5 million for the cost of advertising and 1.5 million for warehouse expense.Since the business that manufactures and sells unicycles for commercial use yields a greater profit (150 million) than the business that sells bicycles to the public (20 million), it is recommended that the majority of the cost of advertising and warehouse expense be allocated to the business that manufactures and sells unicycles for commercial use. Moreover, $4,937,500 should be allocated for the cost of advertising to the business that manufactures and sells unicycles for commercial use, and only $62,500 should be allocated for the cost of advertising of the business that sells bicycles to the public.Additionally, $2,962,500 should be allocated for warehouse expense to the business that manufactures and sells unicycles for commercial use while only $37,500 should be allocated for warehouse expense to the business that sells bicycles to the public. However, there are certain issues that may arise from allocating too many expenses to each of the businesses. For example: if one of the businesses is allocated too much money for advertising, the other business may suffer because it would not have enough money in its budget to advertise properly and effectively.Also, if a business is allocated too little expenses, the business could lose out on certain business ventures that may benefit the company and yield a