Complete Assignment Exercise 16-1: Budgeting on page 559 in your course text
Case Study appearing in Chapters 31
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.
Use the â€œChecklist for Building a Budgetâ€ (Exhibit 16â€“2) and critique your own budget.
Exhibit 16â€“2 Checklist for Building a Budget
- What is the proposed volume for the new budget period?
- What is the appropriate inflow (revenues) and outflow (cost of services delivered) relationship?
- 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.
- Will additional resources be available?
- Will this budget accomplish the appropriate managerial objectives for the organization?