Budget Analysis Essay Example | Topics and Well Written Essays - 1500 words

Budget Analysis - Essay exampleThe reckon can be used as a policy document, a financial plan, and blush as a way to communicate to all departments. 2. There are m some(prenominal) types of compute systems much(prenominal) as the zero- ground cypher, target budget, and management by objective. The zero- bastardlyd budget is based on the idea that each course of studys budget begins fresh. You start off each budget from scratch and work your way through and through it by going through each and every department. The target budget is a budget that is based on a goal. If you want to have a certain amount left in each account you basically work your way backwards. For example, if you want 200,000 in the capital budget account at the blockade of the year and only have 1,000,000 of revenue coming in then you would need to base all of the other expenditures on the difference or 800,000. The 800,000 would be the money left over to budget with since you want to have a certain amount lef t in the account at the end of the budget year. The management by objective is based on results. Management attempts to align the objectives and goals of their employees with the companys overall goals and then measure their goals based on feasibility. Zero-based budgeting is used because it makes the most sense. Each year the urban center would analyze the prior years budget and come up with a variance report. ... The budget cycle is basically the process that each department goes through to make sure they have include everything in their budget. This may include preliminary meetings with the city manager and budget director to pick up what is necessary or necessary for the year. The budget cycle and calendar interact in tune with one other because the calendar basically dictates how much time each department has to go through their budget cycle. 4. The citys budget process is greatly affected by the economic backgrounds of their citizens because the backgrounds determine wha t is needed indoors the city. If the city is primarily made up of individuals who drive all the time then it might determine how much money in street repairs are needed. If the city is constantly seeing an increase in children then it might determine that another school is needed. . 5. Revenue is any money coming into the city. The city has various revenue streams such(prenominal) as taxation, the sale of public services and property, transfers, borrowing, funds from other sectors such as grant giving foundations. The major source of income for most if not all cities is taxation. Taxes come in the form of sales tax and property tax. For the most part, the revenue from taxation can be foreseeable if there is little fluctuation in the population. If citizens are not homeowners then the property taxes would decline. 6. A improve expense is an expense that does not change. This can be almost anything within the citys budget such as equipment maintenance, salaries, etc. This fixed exp ense must be addressed before any other expenditures are added to the budget. Regardless of how much the other expenses are, the fixed