Financial Forecasts and HR Policies - Essay Example

Financial forecasts are not completely reliable as a tool to predict the future financial performance of a company therefore they could be eliminated. The objective is to validate the hypothesis that corporations are better off eliminating financial forecasts as a tool to predict financial performance. This would be made possible by discussing the importance of financial forecasts, presenting the factors which would increase the reliability of forecasts, and identifying if corporations still use financial forecasts as one of their tools to predict financial performance thereby aiding in their future decision-making process.

Meigs, W.E., Johnson, C.E., & Meigs, R.F. (1979). Accounting: The Basis for Business Decisions. Mc-Graw Hill, Inc. New York.

The goal of the authors in this book is to present accounting as an essential part of the decision-making process of various users such as the voter, the taxpayer, the government official, the business manager, and the investor.  It discussed relevant issues in the analysis and preparation of financial statements and their utilization to achieve a company’s objectives.

Viscione, J. A. (1977). Financial Analysis: Principles and Procedures. Houghton Mifflin Company. Boston. Vision aims to teach the student or the manager to use financial analysis in the decision-making process. The book covers topics such as evaluating financial performance, tools for financial planning, cost of capital, and capital budgeting techniques, among others.

Proposal #: 2
Name of your Topic for the Final Paper: Capital Budgeting
Hypothesis: In these times of uncertainties in the competitive environment, managers could opt to pad their budgets to assure that they will have sufficient funds for contingencies.
Abstract: The research aims to determine the rationale for managers opting to pad their budgets to address contingencies. It would discuss the implications of padding the budget and find out alternative methods to meet financial challenges given the uncertainties in the competitive environment.
Annotated Bibliography in APA style:
Accounting 202 Home, Chapter 9: Outline Budgeting: Profit Planning and Control Systems.
Retrieved on January 29. 2009 from <http:// members.tripod.com.>
This chapter clearly showed alternative options available to managers to avoid padding the budget. It also presented concepts in budgeting that would help a decision-maker in making plans and strategies for control.

Budgeting: Profit Planning and Control Systems. Behavioral Impacts of Budgets. Retrieved on
January 29, 2009, from <http://www.kellog.northwestern.edu/faculty/balanch/htm>
This article discusses the rationale for padding the budget. It presents the impact of padding on the financial performance of a company and its repercussions on management’s plans.

Meigs, W.E., Johnson, C.E., & Meigs, R.F. (1979). Accounting: The Basis for Business
Decisions. Mc-Graw Hill, Inc. New York.

The authors presented a concise section on capital budgeting techniques and other aids to managerial decisions. Theories on capital budgets are clearly explained and practical applications are explored through demonstration problems and exercises.

Viscione, J. A. (1977). Financial Analysis: Principles and Procedures. Houghton Mifflin
Company. Boston.