Assignment Exercise 151: Budgeting

Select an organization: either from the Case Studies in Chapters 2728 or from one of the Mini-Case Studies in Chapters 2931.

Required

1. Using the organization selected, create a budget for the next fiscal year. Set out the details of all assumptions you needed in order to build this budget.

2. Use the Checklist for Building a Budget (Exhibit 152) and critique your own budget.

Exhibit 152 Checklist for Building a Budget

1. What is the proposed volume for the new budget period?

2. What is the appropriate inflow (revenues) and outflow (cost of services delivered) relationship?

3. What will the appropriate dollar cost be? (Note: this question requires a series of assumptions about the nature of the operation for the new budget period.)

3a. Forecast service-related workload.

3b. Forecast non-service-related workload.

3c. Forecast special project workload if applicable.

3d. Coordinate assumptions for proportionate share of interdepartmental projects.

4. Will additional resources be available?

5. Will this budget accomplish the appropriate managerial objectives for the organization?

Writing this budget one can assume that a new proposed budget for the new period would be 500,000 with the inflow of 250,000 and outflow of 30,000. The cost of the dollar amount would be 50.00. Forecasting a workload of 20,000 and a non-service related workload of 10,000 one could assume that a cost of 30,000 would be deducted from the inflow of the receivable amounts for the next year. Assuming that the share of interdepartmental projects is at 50,000. Additional resources will be available. The budget proposed will be the objective for the organization.

Assignment Exercise 152: Budgeting

Find an existing budget from a published source. Detail should be extensive enough to present a challenge.

Required

1. Using the existing budget, create a new budget for the next fiscal year. Set out the details of all the assumptions you needed in order to build this budget.

2. Use the Checklist for Building a Budget (Exhibit 152) and critique your own effort.

3. Use the Checklist for Reviewing a Budget (Exhibit 153) and critique the existing budget.