Six Key Purposes of Budgets
• A method of planning the use of resources
• A vehicle for forecasting
• A means of controlling the activities of various groups within the firm
• A means of motivating individuals to achieve performance levels agreed and set.
• A means of communicating the wishes and aspirations of senior management
• A means of resolving conflicts of interest between groups with the organisation
Role of Budgets
• To aid the planning of the organisation in a systematic and logical manner that adheres to the long term strategy• To determine direction• To forecast outcomes• To allocate resources• To promote forward thinking• To turn strategic objectives into practical reality• To establish priorities.• To set targets in numerical terms• To provide direction and co-ordination• To communicate objectives, opportunities and plans various managers.• To assign responsibilities.• To allocate resources.• To delegate without loss of control. • To provide motivation for managers to achieve goals• To motivate staff.• To improve efficiency.• To establish targets and standards which employees are motivated to achieve• To evaluate performance against the budget • To provide a framework for evaluating the performance of managers in meeting individual and department targets• To control activities by measuring progress against the original plan, making adjustments where necessary• To control income and expenditure• To facilitates management by exception• To take remedial action when there is deviation from the plan
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minimum wage
Nhãn: Accounting
ADVANTAGES OF THE MINIMUM WAGE- Fair for workers to be paid a minimum wage. - Helps low earners gain a higher standard of living- Extra disposable income should lead to extra spending in the economy- Helps increase the gap between wages for low earners and unemployment benefit- May help reduce unemployment
DISADVANTAGES OF THE MINIMUM WAGE
- Increases the cost to businesses-Businesses may increase their prices (cost push inflation)- Businesses may be unable to afford to employ as many workers- Could cause unemployment- Other workers may now ask for a pay rise- Doesn’t help the unemployed who don’t receive a wage
In the diagram above, £3.80 is the free market equilibrium wage, supply is equal to demand. At this point 1000 people are employed.
Imagine that a minimum wage is imposed at £4.20. Some businesses can’t afford their wage bill and reduce their workforce. Now only 750 workers are employed. 250 have become unemployed.
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Marketing process
Nhãn: Marketing skill
Macdonald (1995) suggests that several stages have to be completed in order to arrive at a strategic marketing plan. These are summarised in the diagram below:
The extent to which each part of the above process needs to be carried out depends on the size and complexity of the business.
In an un diversified business, where senior management have a strong knowledge and detailed understanding of the overall business, it may not be necessary to formalise the marketing planning process.
By contrast, in a highly diversified business, top level management will not have knowledge and expertise that matches subordinate management. In this situation, it makes sense to put formal marketing planning procedures in place throughout the organisation.
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The extent to which each part of the above process needs to be carried out depends on the size and complexity of the business.
In an un diversified business, where senior management have a strong knowledge and detailed understanding of the overall business, it may not be necessary to formalise the marketing planning process.
By contrast, in a highly diversified business, top level management will not have knowledge and expertise that matches subordinate management. In this situation, it makes sense to put formal marketing planning procedures in place throughout the organisation.
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