Educational Blog - Mywordsolution

Learn Efficiently by Professional Academic Writers, Earn better grades with 24/7 homework help, Ask experts for help.

Operating Budgets Assignment Help, Get Accounting Homework Help Service Online

Operating Budgets

Overview Of Operating Budgets

Every organisation needs to have clarity on its future roadmap in terms of expenses so as to continue its day to day operations smoothly. This process is called budgeting. Budgets are typically classified as operating budgets, capital budgets and financial budgets.

A master budget is usually in place to which estimates cash inflows and outflows and other assets based on the future sales and expense expectations. A financial budget deals with forecasting capital expenditures. This is done so that work can progress smoothly without being impacted by insufficiency of cash like upgrading its plant and machinery etc.

An operating budget is more concerned with revenue expenditures or those which are possible in the near term, typically within the next one year. It is an estimation of how much a company will make within a year and what expenses will have to be made within that year. Forecasts are typically made in areas related to sales, manufacturing costs, overhead expenses, administrative expenses etc. This helps companies to maintain sufficient cash with itself so that day to day operations are not impacted.

Since it is estimation, historical trends are analysed, future economic and business environment is taken into consideration and keeping in mind the company's plans for the year, estimates are made.

Components of an Operating Budget

Sales: Sales constitutes the most important component of the operating budget. Sales or Revenues are generally determined by the units a company plans to sell and the price points at which these sales will materialism. An estimate of both these sub components will be done in other words, how much the company will be able to sell or services the company will deliver and at what price. Depending on the nature of the business monthly or quarterly volumes are taken for estimation.

Expenses: Next is the budget relates to expenses, broadly expenses can be classified into three major categories - fixed costs, variable costs and other expenses. Variable cost include those expenses which have a direct correlation with unit sales. For example raw material costs, labor costs, costs related to transport of raw materials and finished goods. It is a direct function of production as it will vary as much as the production output varies.

Fixed costs are those which a fixed for the given time period and do not vary with variations in the production output. Within a reasonable range of output they remain fixed. For example, the rent for factory building will not change whether the company is producing goods or not. Other items under this head include administrative costs, salaries, utility bills, internet charges, interest costs, depreciation costs etc.

Other expenses include expenses such which are made at discretion such as if any additional services required in between or unforeseeable expenses.

Profits: When revenues and expenses are taken into consideration together, a reasonable idea about the profits that can be made is derived.

Significance Of An Operating Budget

This exercise helps in checking if a company's expenses are justified. It gives a financial road map as to where the company is headed in terms of growth and if any corrective measures or changes need to be made. It helps break down expenses and analyse how efficiently a company can be run. Having an estimate is also important so that the company can build reserves by way of savings and investments for the future and ride over temporary setbacks. When actual sales and revenues kick in and the actual expense numbers are available they can be compared with operating budgets to understand how much variance has taken place and what the plausible reasons are.

Corrective measures can be taken in terms of cost reduction and enhancing production efficiency. It helps a company run its business in a very cost effective and organised manner as it can work towards achieving its goals with the estimates.

How We Help Students

Preparation of Operating Budgets requires very sharp accounting skills and acute judgement in forecasting which are developed with practice. Academic curriculum across universities wish to ensure that their students have adequate knowledge of the theory and practical applications. Hence students are expected to submit a number of assignments pertaining to the same of various difficulty levels.

We provide students with ready to submit assignments once they let us know of their requirements at affordable costs and well within the submission deadline.

Why Choose Us:

Our expert team has been carefully selected and they have a Masters and PhD degree with finance and accounting majors. They can add just the right professional touch to your assignment so that you can improvise your grades and develop a good understanding of the subject.

Give us your requirements and get the best possible solution. Improve your grades and enhance your professional prospects with us today!

Accounting Assignment Help - Homework Help from Qualified and Experienced Expert Writers

We offer assignment help service online which is most popular and liked all over the world. Our experts are helping students for preparing accounts assignments with step by step explanations. The accounting writers not just help in writing assignments but also provide better learning of accounting concepts. Our accounting assignment help service has covered all sub-domains and topics under accounting. We offer accounting assignment help, accounting homework help, other writings services including accounting term papers writing help, essays, research papers, case studies or case analysis writing help, and paper editing, formatting and referencing services.

Few simple steps to get your accounting assignments done online!

  • Ask an Expert - Submit requirement
  • Get quote and make payment
  • Work is allocated to Accounting Writers
  • Sent to you after completion and quality check
  • Unlimited revisions till you are done

Glossary- Operating Budgets Assignment Help, Operating Budgets Homework Help, Operating Budgets Assignment Tutors, Operating Budgets Solutions, Operating Budgets Answers, Budget and Budgeting Controls Assignment Tutors

Experience is what brings us to the top!

Professional Team of Talented Writers Prepares Custom Essays, Term Papers, Dissertations, Case Studies, Customized Homework/Assignments

Scroll to Top