Details

Handbook of Budgeting

Wiley Corporate F&A, Band 562 6. Aufl.

von: William R. Lalli
185,99 €
Verlag:	Wiley
Format:	EPUB
Veröffentl.:	05.12.2011
ISBN/EAN:	9781118170618
Sprache:	englisch
Anzahl Seiten:	864

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Beschreibungen

Titelbeschreibung

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.

Inhaltsverzeichnis

Foreword xv Preface xvii Part One: Introduction to the Budgeting Process Chapter 1: Integrating the Balanced Scorecard for Improved Planning and Performance Management 3 Overview 3 Elements of a Balanced Scorecard 5 Use of Strategy Maps 11 Scorecard Cascading 12 Bringing It All Together 13 Integrating the Scorecard with Planning and Performance 14 Balanced Scorecard and Annual Planning 15 Continuous Strategic Management with the Scorecard 22 Summary 24 Chapter 2: Strategic Balanced Scorecard–Based Budgeting and Performance Management 25 Introduction: Why Most Companies Fail to Implement Their Strategies 25 Why a few Companies Produce Exceptional Results 26 Measure your Strategy with Balanced Scorecard 34 Balanced Scorecard-Based Budgets 37 Performance Management 38 Summary 39 Chapter 3: Budgeting and the Strategic Planning Process 41 Definition of Strategic Planning 41 Planning Cycle 42 Strategic Planning Process: A Dynamic Cycle 44 Situation Analysis 46 Business Direction/Concept 58 Alternative Approaches 61 Operational Plan 62 Measurement 66 Feedback 66 Contingency Planning 68 Problems in Implementing Formal Strategic Planning Systems 69 Summary 70 Chapter 4: Budgeting and Forecasting: Process Tweak or Process Overhaul? 71 Introduction 71 Survey Methodology 72 Findings: Budgeting Process 72 Findings: Forecasting Process 86 Report Summary 89 Developing a Road Map for Change 90 Chapter 5: The Budget: An Integral Element of Internal Control 93 Introduction 93 The Control Environment 94 Planning Systems 96 Reporting Systems 98 Summary 102 Chapter 6: Relationship Between Strategic Planning and the Budgeting Process 103 Introduction 103 How to Plan 103 The Audience for Whom the Plan Is Designed 104 Strategic Business Planning and Its Role in Budgeting 105 Planning Differences among Small, Medium, and Large Organizations 106 Components of Strategic Planning 107 Management and Organization 108 Market Analysis 110 Formulation of Marketing Strategies 111 Operations Analysis 112 Summary 114 Chapter 7: The Essentials of Business Valuation 115 Introduction 115 Understanding the Valuation Assignment 117 Research and Information Gathering 120 Adjusting and Analyzing the Financial Statements 123 Three Approaches to Valuing a Business 125 Income Approach 125 Market Approach 132 Asset Approach 135 Making Adjustments to Value 136 Reaching the Valuation Conclusion 141 Chapter 8: Moving Beyond Budgeting: Integrating Continuous Planning and Adaptive Control 145 Introduction 145 Annual Budgeting Trap 146 Why Some Organizations Are Going Beyond Budgeting 147 Beyond Budgeting: Enabling a More Adaptive Performance Management Process 148 Climbing the Twin Peaks of Beyond Budgeting 152 Beyond Budgeting: Enabling Radical Decentralization 153 Chapter 9: Moving Beyond Budgeting: An Update 161 Introduction 161 Beyond Budgeting Round Table (BBRT) 162 Guardian Industries Corporation 163 Part Two: Tools and Techniques Chapter 10: Implementing Forecasting Best Practices 169 Introduction 169 Budgeting versus Forecasting 170 Implementing Forecasting Best Practices 170 Forecasting Best Practices: Process 171 Forecasting Best Practices: Organization 174 Forecasting Best Practices: Technology 176 Conclusion 178 Chapter 11: Calculations and Modeling in Budgeting Software 181 Introduction 181 Why Companies Use Budgeting Software 181 Calculations in Accounting Systems and Spreadsheets 183 Budgeting Software 184 OLAP Databases 186 Modeling and Budgeting 188 Processes 189 More Complex Budgeting Calculations 190 Conclusion 192 Chapter 12: Cost-Accounting Systems: Integration with Manufacturing Budgeting 193 Introduction 193 Decision Factors in the Selection Process 194 Cost-Accounting System Options 195 Costs Associated with a Product 195 Labor Cost 196 Variable Costing and Budgeting 197 Full Costing and Budgeting 217 Cost-Accumulation Procedures 219 Valuation: Actual versus Standard 221 Actual Costing 223 Actual Costing, Budgeting, and Cost Control 226 Standard Costing 226 Variance Reporting 231 Variances and Budgeting 236 Manufacturing Overhead 236 Manufacturing Overhead, Budgeting, and Cost Control 247 Chapter 13: Break-Even and Contribution Analysis as a Tool in Budgeting 249 Introduction 249 Break-Even Analysis 249 Price/Volume Chart 254 Contribution Analysis 255 Cost–Volume–Price and the Budgeting Process 261 Chapter 14: Profitability and the Cost of Capital 263 Introduction 263 A Market Gauge for Performance 265 Coping with the Cost of Equity 266 Building Company-Wide Profit Goals 268 Building Divisional Profit Goals 270 Information Problems and Cost of Capital 276 Summary 276 Chapter 15: Budgeting Shareholder Value 279 Introduction 279 Long-Term Valuation 281 Economic Value Added 285 Complementary Measures of Valuation 290 Budgeting Shareholder Value 293 Summary 296 Chapter 16: Applying the Budget System 297 Introduction 297 Initial Budget Department Review of Divisional Budget Packages 299 Divisional Review Meetings 302 Budget Consolidation and Analysis 303 Preliminary Senior Management Review 303 Final Revision of Operating Group Plans 304 Second Budget Staff Review of Operating Group Plans 304 Revised Consolidated Budget Preparations 305 Final Senior Management Budget Review Sessions 305 Operating Groups’ Monthly Submissions 306 Effective Use of Graphics 306 Summary 306 Chapter 17: Budgets and Performance Compensation 307 Introduction 307 Measures of Executive Performance 308 Structuring Reward Opportunities 316 Pitfalls of Linking Incentives to Budgets 317 An Optimal Approach 320 Adjusting Operating Unit Targets 324 Budgets and Long-Term Incentive Plans 326 Summary 328 Chapter 18: Predictive Costing, Predictive Accounting 329 Internet Forces the Need for Better Cost Forecasting 329 Traditional Budgeting: An Unreliable Compass 330 Activity-Based Costing as a Foundation for Activity-Based Planning and Budgeting 331 Budgeting: User Discontent and Rebellion 331 Weary Annual Budget Parade 333 ABC/M as a Solution for Activity-Based Planning and Budgeting 334 Activity-Based Cost Estimating 335 Activity-Based Planning and Budgeting Solution 336 Early Views of Activity-Based Planning and Budgeting Were Too Simplistic 337 Important Role of Resource Capacity Causes New Thinking 337 Major Clue: Capacity Exists Only as a Resource 339 Measuring and Using Cost Data 340 Usefulness of Historical Financial Data 341 Where Does Activity-Based Planning and Budgeting Fit In? 344 Activity-Based Planning and Budgeting Solution 345 Risk Conditions for Forecasting Expenses and Calculated Costs 350 Framework to Compare and Contrast Expense-Estimating Methods 352 Economics 101? 355 Chapter 19: Cost Behavior and the Relationship to the Budgeting Process 357 Introduction 357 Cost Behavior 357 Break-Even Analysis 360 Additional Cost Concepts 365 Differential Cost Concepts 368 Maximizing Resources 370 Estimating Costs 373 Summary 375 Part Three: Preparation of Specific Budgets Chapter 20: Sales and Marketing Budget 379 Introduction 379 Overview of the Budget Process 379 Special Budgeting Problems 384 Pertinent Tools 389 Unique Aspects of Some Industries 392 Summary 394 Chapter 21: Manufacturing Budget 395 Introduction 395 Concepts 400 Changing to a Cost-Management System 402 Problems in Preparing the Manufacturing Budget 407 Three Solutions 410 Technique 410 Determining Production Requirements 411 Step 1: Developing the Plannable Core 413 Step 2: Obtaining Sales History and Forecast 413 Step 3: Scheduling New and Revised Product Appearance 415 Step 4: Determining Required Inventory Levels 416 Step 5: Establishing Real Demonstrated Shop Capacity 418 Step 6: Publishing the Master Schedule 424 A Total Quality Program—The Other Alternative 425 Inventory and Replenishment 431 More on the Manufacturing Budget 434 Determining Raw-Material Requirements 434 Determining Other Indirect-Material Costs 436 Determining Direct-Labor Costs 437 Establishing the Manufacturing Overhead Functions and Services 440 Quality Control Economics Review Questions 447 Plant Engineering Buildings and Equipment Maintenance Review Questions 449 Floor and Work-in-Process Control Review Questions 450 Summary 451 Chapter 22: Research and Development Budget 455 Relationship of Research and Development and Engineering to the Total Budgeting Process 455 Problems in Establishing Research and Development and Engineering Objectives 459 Developing a Technological Budget 465 Preparing a Departmental Budget 481 Managing a Budget 484 Coordinating Project Budgets 490 Chapter 23: Administrative-Expense Budget 493 Introduction 493 Role and Scope of the Administrative-Expense Budget 493 Methods Used for Preparing the Administrative-Expense Budget 498 Factors that Impact the Administrative-Expense Budget 502 Unique Issues Impacting the Administrative-Expense Budget 503 Tools and Techniques for Managing the Administrative-Expense Budget 504 Summary 506 Chapter 24: Budgeting the Purchasing Department and the Purchasing Process 507 Description and Definition of the Process Approach 507 Role of Process Measures 512 Process Measures 513 Creating the Procurement Process Budget 517 Chapter 25: Capital Investment Review: Toward a New Process 519 Introduction 519 Context of the Revised Capital-Investment Review Process 520 Benchmarking Capital-Investment Review Best Practices 523 Revised Capital-Investment Review Process: Overview 527 Implementation: What Bonneville Learned in the First Three Years 541 Summary 544 Chapter 26: Leasing 545 Introduction 545 Overview of the Leasing Process 546 Possible Advantages of Leasing 549 Possible Disadvantages of Leasing 550 Types of Lease Sources 550 Lease Reporting 552 Lease versus Purchase Analysis 560 Financial Accounting Standards Board Rule 13 Case Illustration 564 Negotiation of Leases 565 Selecting a Lessor 566 Lease-Analysis Techniques 566 Lease Form 572 Summary 579 Chapter 27: Balance-Sheet Budget 581 Introduction 581 Purpose of the Balance-Sheet Budget 582 Definition 582 Responsibility for the Budget 583 Types of Financial Budgets 587 Preparing Financial Budgets 588 Preparing the Balance-Sheet Budget 591 Adequate Cash 620 Financial Ratios 620 Analyzing Changes in the Balance Sheet 628 Chapter 28: Budgeting Property and Liability Insurance Requirements 635 Introduction 635 Role Risk Management Plays in the Budgeting Process 637 Types of Insurance Mechanisms 638 Role of Insurance/Risk Consultants 639 Use of Agents/Brokers 639 Self-Insurance Alternatives 640 Identifying the Need for Insurance 643 Key Insurance Coverages 645 Identifying Your Own Risks 650 How to Budget for Casualty Premiums 653 Summary 656 Part Four: Budgeting Applications Chapter 29: Budgeting: Key to Corporate Performance Management 659 Future of Budgeting 659 Adding Value to the Organization 660 Corporate Performance Management 661 Developing a Budget Process Focused on Implementation of Strategy 662 Role of Technology 666 Overcoming Organizational Resistance 669 Planning and Controlling Implementation of a New System 670 Conclusion 675 Chapter 30: Zero-Based Budgeting 677 Introduction 677 Problems with Traditional Techniques 678 Zero-Based Approach 679 Zero-Based Budgeting Procedures 680 Decision Package 681 Ranking Process 687 Completing the Profit and Loss 689 Preparing Detailed Budgets 692 Summary 695 Chapter 31: Bracket Budgeting 697 Introduction 697 Application of Bracket Budgeting 698 Premises to Profits? 699 Developing a Tactical Budgeting Model 700 Bracket Budgeting in Annual Planning 719 Consolidating Income Statements 720 Summary of Benefits 720 Summary 722 Chapter 32: Program Budgeting: Planning, Programming, Budgeting 723 Introduction 723 Description of Program Budgeting 724 History 728 Framework of Program Budgeting 734 Program Structuring 747 Types of Analysis 751 Installation Considerations 759 Summary 763 Chapter 33: Activity-Based Budgeting 767 Introduction 767 Traditional Budgeting Does Not Support Excellence 768 Activity-Based Budgeting Definitions 771 Activity-Based Budgeting Process 774 Linking Strategy and Budgeting 775 Translate Strategy to Activities 780 Determine Workload 781 Create Planning Guidelines 783 Identify Interdepartmental Projects 783 Improvement Process 787 Finalizing the Budget 787 Performance Reporting 788 Summary 790 Part Five: Industry Budgets Chapter 34: Budgeting For Corporate Taxes 793 Introduction 793 Taxation of C Corporations 794 Personal Holding Company Tax 799 Net Operating Loss Utilization 799 Charitable Contributions 800 Taxation Budget 802 Federal Corporate Tax 803 Purposes 804 Tax Return 804 Chapter 35: Budgeting in the Global Internet Communication Technology Industry 805 Overview 805 Essentials from Earlier Chapters 806 Freemium Strategies 808 Volunteer Services 809 Enterprise Risk Management 811 About the Editor 813 About the Contributors 815 Index 825

Autorenportrait

William Rea Lalli (New Rochelle, NY) is a certified public accountant in New York and was the founder and CFO of WillCo LLC, a premier provider of continuing professional education in the study of budgeting, planning, forecasting, corporate finance, auditing, accounting, and taxation. After a successful career in public accounting with the world's largest firm and AICPA, Mr. Lalli held progressively responsible executive positions with the world's largest conference organizers. He has been published many times by AICPA, and is on the Board of Advisors of The Journal of Corporate Accounting & Finance.