Download file to see previous pages...
This section will describe the general steps that a company takes in its process of budget formulation. After that a brief description of the modern techniques of budgeting will be made with the intention that the concept of budgeting system can be understood more clearly. With a clear picture of the system of budgeting, it will now be helpful to discuss certain roles that budgeting plays within an organization. Thus, roles of budgeting as an instrument for planning and control have been depicted in the next section. The research paper then takes a move towards the practicalities of implementation of budgeting system in the real world by examining its scope in PepsiCo. In this section, the system that PepsiCo follows has been analyzed critically by taking data from the official site of the company. The annual report has been taken care of and also the financial result of third quarter of 2010 has been considered in order to evaluate the efficiencies of its budgeting system. The research paper concludes with a few recommendations for the improvement of budgeting system in PepsiCo. The recommendations are made on the basis of investigation of the current scenario of the company and also on the basis of the certain general traits that a company requires to follow with regard to its budgeting system.
The research paper has been prepared to analyze the budgeting system with respect to a company. The budgeting system of the company which will be analyzed in this research paper is PepsiCo. Inc. PepsiCo is one of the world’s biggest producers of foods, snacks and beverages. It has revenue earnings of over $60 billion and has 2, 85, 000 employees. The company was founded by Donald M. Kendall, CEO and President of Pepsi-Cola and Herman W. Lay, CEO and Chairman of Frito-Lay. The company was the creation of the merger of the two companies. The company has grown largely over the
...Download file to see next pagesRead More
This paper will discuss budgeting with respect to the construction industry. It will describe the functions of budgeting along with the role of budgeting in motivating behaviors within organizations. We will also discuss how potential dysfunctional consequences arise from the actions that budget holders may take when they are responsible for the budget.
However, the way to report should adhere to set international financial reporting standards. A financial reporting system is unique to a company and should be made in such a way that it does not contravene the set standards. A financial reporting system uses financial statements thus encompasses characteristics and components of such financial statements.
Accounting Table of Contents The Purposes of Budgeting 2 Conventional Budgeting Process in the Global Context 2 Zero-based Budgeting 3 Activity-based Budgeting 4 Beyond Budgeting Model 4 The Behavioural Aspects of Budgeting 6 Reflection 7 Bibliography 8 Traditionally, the main use of budgeting has been to control expenses and facilitate planning process.
It generally provides considerable assistance in identifying the dimensions of business functions that need more attention to be upgraded and delivers a rational idea regarding the unnecessary expenses incurred within a particular organization with the motive of preserving financial effectiveness.
How effective is budgeting to the financial planning of an organization? In the recent past, conflicting claims have arisen on the need for budgeting as a planning tool for businesses. A section of financial advisors and analysts hold that budgeting is an outdated way of planning.
Budgeting is a means to an end.. In the hands of the management, well being of organization is at heart and budgeting can accomplish much.(Doh Joon Chien). Success of this depends upon the effectiveness of the budget system. Budgeting is generally handled by accountants, financial experts and representatives from each department of the company.
The new organizational structure must be resilient, proactive, and forward-looking so that the change program will be effective. To complete such development, a change of accounting system must also be considered, most of which is to get rid
The financial accountants of a company prepare the financial statements like the balance sheet and profit and loss account which is mainly use by the external stakeholders of the company (e.g. the shareholders, bank, government etc). The
According to Levensaler (2008), “performance management is an organizational process, which entails creating a favorable environment for employees to perform their jobs to the best of their abilities” (p. 3). Performance management captures almost all aspects of
Preparing a monthly budget includes recording of all possible incomes in the month, and listing of all fixed expenses like rent, telephone and utilities, and then last is the listing of variable expenses. This way, you can find the
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Company Budgeting System for FREE!