3 recheck your budget recheck you numbers your

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3. Recheck your budget. Recheck you numbers, your assumptions, and your explanations. Do they make sense? 3. Prepare for your formal review to authorize the budget. You will need to be able to explain your budget to your manager and or other senior individuals. Try to anticipate questions that might be asked of you. For example, why does a certain category have more of an estimated increase than in other years? What is the cause? What are some of the major changes in your budget? Where are the most dollars spent? In turn, depending upon your questions and answers you may have to prepare a presentation that may involve more than just your budget. It might involve key activities that have impacted changes such as the purchase of a computer system. You may want to create additional visual aids such as graphs and charts to show visually how items in your budget relate to each other as well as historical trends. The use of PowerPoint is particularly effective and impressive. 4. Put your budget into action. Once your budget receives approval or “authorization”by senior management, it is now time to manage your department within the limits of your budget. 5. Assess your budget activities. If you identify that you need to make changes to the budget once it is approved, you should consult with your manager. You will be comparing your actual numbers to your estimates (the variance). Question the cause for running over or under the budget. Is the variance large? There may be a need to modify your budget and this probably will require the approval of senior management. 4
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Fall 2017 The Budget Project Questions for Review: Complete the following questions and submit to your instructor in typewritten form. 1. ____________________________This form of budget is used by department supervisors that do not directly generate revenue for a company in terms of selling a product or service 2. Companies sometimes use a combination of two forms of budgets in the process of managing money. These two kinds of budgeting methods are: _______________________ and ___________________________________ 3. Explain three reasons why supervisors should understand how to prepare a budget: 4. What is the relationship between an operating budget and the firm’s Strategic Plan? 5. How often do supervisors monitor their budgets? How do they monitor their budget? 6. What is the first thing a new supervisor should do if asked to prepare a budget? 7. After a supervisor gathers and compiles the data and prepares the budget, what is the most important action a supervisor must perform? 8. Explain why this statement is incorrect: “A supervisor generally approves his or her own budget?” 9. When a supervisor presents a budget to senior managers, what should the supervisor be prepared to explain? 10. What happens to departmental budgets—in other words, how do accountants use the information from departmental budgets?
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  • Spring '17
  • vega
  • supervisor, 2010s

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