By Michael C. Thomsett
Thomsett outlines a particular process for getting ready and utilizing budgets and forecasts that saves managers time and corporations cash. Will end up to be a precious source in furthering the manager's personal profession.
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The Little Black Book of Budgets and Forecasts (The little black book series)
Thomsett outlines a selected strategy for getting ready and utilizing budgets and forecasts that saves managers time and corporations cash. Will end up to be a precious source in furthering the manager's personal profession.
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Additional info for The Little Black Book of Budgets and Forecasts (The little black book series)
Example text
2. You assign an employee the task of developing a budget for the coming year's telephone expenses. How would you instruct him to justify his numbers? 3. You are coordinating the budget for several other departments. The marketing manager has increased all expenses for travel, entertainment, and telephone, even though one of seven field offices has been closed. How would you suggest a revision? Page 16 2 Making Budgets Succeed There cannot be a crisis next week. My schedule is already full. Henry Kissinger The vice president of administration was generally pleased with the current year's budget.
In the case of the consulting firm, the limitations expressed in the accounting version (in terms of billable hours and recent trends) were used to modify the marketing version. A somewhat less optimistic forecast was settled upon, recognizing that growth in permanent clients would probably proceed at a slower rate than marketing had predicted; and that hiring new professional staff members should be done on a more cautious schedule than originally planned. Assumptions should be tested against historical fact.
Work Project 1. Printing expenses in your department are running 18% above budget. Identify three possible causes of the problem. 2. Income for the first quarter is far below the forecast level. The assumption was made that the estimated 714 salespeople would average $9,500 in volume per month. You discover that the sales force now includes 723 people, but they are averaging only $7,250 each. What suggestions would you make? 3. You want to hire an additional employee because workloads are much greater than anyone thought last year.