Financial Management l Budget = financial plan used to forecast needs, allocate resources, and track progress »set goals and objectives »record what is.

Slides:

Advertisements

Similar presentations

5 C H A P T E R Operational Budgets.

Advertisements

Using Budgets for Planning and Coordination

Chapter 15 Fundamentals of Variance Analysis Learning Objectives 4.Prepare and use a profit variance analysis. 2.Develop and use flexible budgets.

ACG 2071 Chapter 21 Module 9 Fall 2007

Chapter 10 FISCAL MANAGEMENT. DEALS WITH GOAL SETTING, DESIGNING A BUDGET THAT IS TARGETED TO ACHIEVE THOSE GOALS, THE PROCESS OF BUDGET REVIEW AND APPROVAL,

Chapter 9 BUDGETING A budget is a formal written statement of management’s plans for a specified future time period, expressed in financial terms Control.

Overall Framework Decision Making (Unit 2) -CVP -Special Orders -Make or Buy -Capital Investments Cost Accumulation Systems (Unit 1) Corporate Strategy.

Intro to Master Budget AGEC 489/689 Spring 2009 Slide Show #4.

Contemporary Engineering Economics, 4 th edition, © 2007 Estimating Profit from Production Lecture No. 31 Chapter 8 Contemporary Engineering Economics.

Should you always use a budget as a tool to guide your spending priorities? 1.Yes 2.No.

Forecasting and Budgeting

6 - 1 Benefits of Budgeting Essentials of Effective Budgeting Master Budgetster Budget Budgeted Income Statement Cash Budget BudgetingBudgeting in a nonmanufac-

Cost Control Measures for Food Service Operations

Budgeting and Financial Planning Chapter 15. Why budgets?  Planning  Controlling  Coordination  Allocation of resources  Evaluation.

Fundamentals of Variance Analysis Chapter 16 Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Operational Budgeting and Profit Planning

Chapter 13 Management of Financial Resources. Foodservice Organizations, 5th edition Spears & Gregoire ©2004 Pearson Education, Inc. Upper Saddle River,

CHAPTER 3 COST CONTROL What is revenue? (147) The income from sales before expenses.

MONITOR CATERING REVENUE AND COSTS

Managing Financial Resources FCS 387. The Purpose of Budgeting What is a budget? The organization’s business plan expressed in financial terms. Based.

Budgeting and Standard Cost Accounting

Budgeting and Standard Cost Systems Chapter 13. Budgeting A budget is a financial and quantitative plan for the acquisition and use of resources Use for.

FINANCE BASIC FACTS. Sources of funds Internal Retained profits Sale of assets Using trade credit Investing surplus cash Reducing inventory External Personal.

Budget & Budgetary Control.  A budget is a detailed plan for some specific future period. It is an estimate prepared in advance for some specific period.

5 C H A P T E R Operating Budgets.

Budgeting - 1 BUDGETING Sales projections Business trends Inventory needs New competition ? ? ? ?

McGraw-Hill/IrwinCopyright ©2008 The McGraw-Hill Companies, Inc. All rights reserved. Fundamentals of Variance Analysis Chapter 16.

Financial Control in Restaurants Overview □This presentation gives information about the financial management of restaurants Goal □To learn how to manage.

Chapter 22 Master Budgets

Copyright © by Houghton Mifflin Company. All rights reserved.1 Financial & Managerial Accounting 2002e Belverd E. Needles, Jr. Marian Powers Susan Crosson.

5.01 Budget Planning & Control. Budget Planning Financial planning is one tool managers use to improve profitability. Planning the financial operations.

CDA COLLEGE BUS235: PRINCIPLES OF FINANCIAL ANALYSIS Lecture 8 Lecture 8 Lecturer: Kleanthis Zisimos.

Financial Management Back to Table of Contents. Financial Management 2 Chapter 21 Financial Management Analyzing Your Finances Managing Your Finances.

3.4 Budgeting HL Chapter 21. What is a Budget? A budget is a detailed financial plan for the future. A budget holder is the individual responsible for.

1 Enterprise Analysis l The analysis evaluates the income and costs as they were in the past l The analysis answers the question What was the profit gained.

CPS ® and CAP ® Examination Review MANAGEMENT, Fifth Edition By Haney and Mazzola ©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River,

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 14-2 Budgeted Income Statement.

Profit Planning Budgeting Plan to follow Communication Coordination Performance standards Determine problem areas.

MultiMedia by Stephen M. Peters© 2002 South-Western Control Techniques.

Chapter 16 The Financial Plan. Copyright © Houghton Mifflin Company16-2 Overview Estimating sales and capital expenditures Preparing the pro forma income.

Preparing Financial Documents The Income Statement & Balance Sheet.

Financial Management Glencoe Entrepreneurship: Building a Business Analyzing Your Finances Managing Your Finances 21.1 Section 21.2 Section 21.

Budgeting Student Version Describe budgeting, its objectives, and its impact on human behavior

The Importance of Understanding Finance The Parsley Patch! Problem? Solution? Outcome?

Contemporary Engineering Economics, 6 th edition Park Copyright © 2016 by Pearson Education, Inc. All Rights Reserved Estimating Profit from Production.

Problem Area 1 Entrepreneurship in Horticulture. Next Generation Science/Common Core Standards Addressed! HSNQ.A.1 Use units as a way to understand problems.

Needles Powers Crosson Principles of Accounting 12e The Budgeting Process 22 C H A P T E R ©human/iStockphoto.

Copyright © 2011 by John Wiley & Sons, Inc. All Rights Reserved Agenda Review chapter four Chapter quiz Discussion of quiz Opening activity Chapter five.

Profit Planning. What is it? What is it? Why is it important? Why is it important? Financial changes occur constantly Financial changes occur constantly.

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 Budgeting.

CHAPTER ELEVEN: BUDGETING AND CONTROLLING COSTS Back- of-the- House Operations Front- of- the- House Operations Controlling Food, Beverage, and Labor Costs.

Accounting and Record Keeping It’s Your Business, Take Control… Bottom Line Solution

Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen.

IENG 216 Budgeting. Guidelines  Set Objectives  Bottom Up vs Top Down  Sales Forecast  Historical Data  Non-Financial Parameters  Responsibility.

The Budgeting Process 7. OBJECTIVE 1: Define budgeting, and explain budget basics.

IENG 216 Budgeting.

DEVELOPING A BUSINESS PLAN FOR A MANUFACTURING COMPANY: BUDGETING

Projection of Financial Requirements

Cash Flow and Breakeven analysis

Cash Flow and Breakeven analysis

اهلا وسهلا برنامج تدريب المشروعات الصغيرة SMET دائرة التنمية والتخطيط

© 2017 by McGraw-Hill Education

PowerPoint presentation

Concepts and Objectives of Cost Accounting

MAINTAINING FINANCIAL INFORMATION

Operations Management

Cash Flow and Financial Planning

© 2017 by McGraw-Hill Education

Cash Flow and Financial Planning

Financial Management Budget = financial plan used to forecast needs, allocate resources, and track progress set goals and objectives record what is accomplished.

Presentation transcript:

Financial Management l Budget = financial plan used to forecast needs, allocate resources, and track progress »set goals and objectives »record what is accomplished »evaluate progress »take corrective action quickly l Based on past experience or industry-wide data

Kinds of Budgets l Operating: day-to-day guide »for statistics, estimate volume indicators »expense »revenue l Capital = long-term planning »equipment »renovation »construction l Master = overall coordinating budget

Types of budgets l fixed l flexible l zero-based l cash

Budget Planning 1. Evaluation of past performance and likely changes 2. Preparation: Forecast, draft A.List all sources of income and projected amounts B.List all expenses A.food, labor, overhead, operating expenses C.Add other volume indicators D.Justify requests for new funds 3. Justification: review, revise 4. Implementation: use it! 5. Control: ongoing monitoring

Types of Records/Reports l Purchasing and receiving l Storage and inventory l Food production l Operating and maintenance

Types of Records/Reports l Service records »use categories as needed –schools –hospitals –commercial enterprises l Cash transactions l Personnel records

Important Calculations (N321) l Per portion food costs »food AP; food EP l Selling price »Raw-food cost method »Demand-oriented pricing »Prime-cost pricing »Competitive pricing l Inventory turnover rate

Important Calculations l Daily Food Cost Report l Profit and Loss Statement l Break-even point (BEP)