Budgeting Basics and Beyond

by Shim, Jae K.; Siegel, Joel G.; Shim, Allison I.

• ISBN13: 9781118387023
• ISBN10: 1118387023
• Edition: 4th
• Format: eBook
• Copyright: 2012-03-12
• Publisher: Wiley

Summary

A convenient and up-to-date reference tool for today's financial and nonfinancial managers in public practice and private industry

If the very thought of budgets pushes your sanity over the limit, then this practical, easy-to-use guide is just what you need. Budgeting Basics and Beyond, Fourth Edition equips you with an all-in-one resource guaranteed to make the budgeting process easier, less stressful, and more effective. The new edition covers rolling budgets (forecasts), activity-based budgeting, life-cycle budgeting. Cloud computing, Balanced Scorecard, budgeting for nonprofit organizations, business simulations for executive and management training, and much more!

• Includes several new software packages, computer-based models and spreadsheet applications, including Value Chain Management software, Financial Planning and Performance software, Web 2.0, Cloud computing, and capital budgeting software
• Features case studies, illustrations, exhibits, forms, checklists, graphs, samples, and worked-out solutions to a wide variety of budgeting, planning, and control problems
• Offers financial planning and new types of financial modeling, variance analysis, Web-based budgeting, active budgeting illuminating "what-if" analyses throughout, spreadsheet applications, break-even analysis, project analysis, and capital budgeting

Budgeting Basics and Beyond, Fourth Edition is a practical, easy-to-use problem-solver and up-to-date reference tool for today's financial and nonfinancial managers in public practice and private industry.

Author Biography

JAE K. SHIM, PhD, has authored or coauthored more than fifty professional and college finance and accounting books. Thirty of his publications have been translated into various languages such as Chinese, Spanish, Russian, Polish, Croatian, Italian, Japanese, and Korean. He is CEO of Delta Consulting Co., a consulting and training firm, and accounting and finance professor at California State University, Long Beach.

JOEL G. SIEGEL, PhD, CPA, is the author of over fifty books and has written hundreds of articles for accounting and financial journals. He was a member of the audit staff at Coopers & Lybrand. Dr. Siegel has acted as consultant in accounting issues to many organizations, including IT&T, Citicorp, and Person/Wolinsky CPA Review.

ALLISON I. SHIM, MS, is CFO of Delta Consulting Co. She is a finance expert and a PhD candidate at the University of California at Irvine.

Table of Contents

About the Authors xi

Preface xiii

Chapter 1: The What and Why of Budgeting: An Introduction 1

Chapter 2: Strategic Planning and Budgeting: Process, Preparation, and Control 29

Chapter 3: Administering the Budget: Reports, Analyses, and Evaluations 45

Chapter 4: Break-Even and Contribution Margin Analysis: Profit, Cost, and Volume Changes 57

Chapter 5: Profit Planning: Targeting and Reaching Achievable Goals 79

Chapter 6: Master Budget: Genesis of Financial Forecasting and Profit Planning 95

Chapter 7: Cost Behavior: Emphasis on Flexible Budgets 119

Chapter 8: Evaluating Performance: The Use of Variance Analysis 131

Chapter 9: Manufacturing Costs: Sales Forecasts and Realistic Budgets 191

Chapter 10: Marketing: Budgeting for Sales, Advertising, and Distribution 203

Chapter 11: Research and Development: Budgets for a Long-Term Plan 223

Chapter 12: General and Administrative Costs: Budgets for Maximum Productivity 237

Chapter 13: Capital Expenditures: Assets to Be Bought, Sold, and Discarded 243

Chapter 14: Forecasting and Planning: Reducing Risk in Decision Making 267

Chapter 15: Moving Averages and Smoothing Techniques: Quantitative Forecasting 277

Chapter 16: Regression Analysis: Popular Sales Forecast System 289

Chapter 17: Cash Budgeting and Forecasting Cash Flow: Two Pragmatic Methods 301

Chapter 18: Financial Modeling: Tools for Budgeting and Profit Planning 315

Chapter 19: Using Software Packages and E-Budgeting: Computer-Based Models, Spreadsheets, and Web-Based Systems 329

Chapter 20: Capital Budgeting: Selecting the Optimum Long-Term Investment and Real Options 351

Chapter 21: Budgeting for Cost Management: Activity-Based Budgeting and Life-Cycle Budgeting 393

Chapter 22: Zero-Base Budgeting: Priority Budgeting for Best Resource Allocation 411

Chapter 23: Managers’ Performance and Balanced Scorecard: Evaluation at the Division Level 419

Chapter 24: Budgeting for Service Organizations: Special Features 453

Chapter 25: Budgeting for Nonprofit Organizations: Diverse Types 463

Chapter 26: Using Management Games for Executive Training 487

Appendix I: Future and Present Value Tables 505

Appendix II: Statistical Table 511

Glossary of Budgeting and Planning Terms 513

Index 531