Prepare an operational budget of your institution keeping in mind of the changing demands of
higher educational institutions.
The process of building an operating budget should be an orderly one. It is important to use one’s best estimate for each component of the budget. While it is impossible to know the future and thus there is always the risk of underestimating or overestimating revenues and expenses, it is still important that one create a budget that is as close to expected reality as possible.
Expenditures:
It is essential to understand cost behavior and cost drivers in order to measure the cause and effect of various decisions. Costs can be viewed from two perspectives. Costs may be fixed or variable. They may also be direct or indirect. Fixed or variable costs can be understood in terms of the cost linkage to the organization’s volume of activity—which is generally measured by its revenue. Costs that stay the same when activity volume increases (or decreases) are fixed costs. Costs that increase (decrease) in proportion to activity volume increases (or decreases) are variable costs.
Many costs are neither fixed nor variable, but a combination of the two. In not-for-profit organizations like schools, most costs are fixed, at least until capacity is reached, when another jump in fixed cost is added. For example, dormitory costs for heat and light and depreciation do not immediately go up or down, depending on the number of students in the building. Eventually, however, if the institution grows, another dormitory must be added. At that point the fixed costs related to the dormitories take a major bump upward.
Direct costs are incurred for the benefit of just one product or service. Indirect costs are incurred for the benefit of many products or services. Indirect costs are often called overhead, and are shared across departments or projects. Top administrative costs are indirect costs and are shared across all departments in an organization, whereas a faculty salary for teaching only accounting courses would be a direct cost to the accounting department. All costs are tied to activities. The more complex the activity becomes, the greater the expense.
The importance of tying
__________ _______ _____ ________ _________ _______ _____ __________.
___ _____ _______ __________ _________ ______.
___ _______ _________ ___ _________ ________ __________ ________ ____ ______ _________.
____ __________ _____ _________ ____ __________ ____ _____ ____.
_______ _____ ______ ______ __________ _______ _________.
________ _____ _____ _______ ______ _____ ______.
________ ______ ______ ___ _____ ________ ________ _________ ______ __________.
_____ ______ ____ ______ ____ __________ _________ ____ _________ _________ ___ _______.
_______ _________ ____ ________ ___ ___ _____ __________ _________ _____ _______.
_____ __________ _______ _____ _______ _________ _____ ___ _____ ________ ________.
_____ ______ __________ ___ ______ _____ ____ __________ __________ ____ _________.
____ _________ ___ ____ ______ __________ ____ _________ ________ ____.
________ ________ __________ _______ ________ ___ _________ __________ __________ ____.
_______ ________ __________ ________ ________ ___ __________ _________ _________ __________ ____.
________ ________ ______ ___ ___ ____.
_______ _______ _________ _____ _______ _____.
_____ ____ _________ ______ ______ __________ ___ _________ _____.
______ ____ __________ ____ _______ ________.
______ _______ _________ ______ ________ ___ _________ _____ __________.
______ ______ ___ ___ ___ ______.
____ ________ _____ ____ ______ __________.
____ __________ ________ ______ _____.
________ _______ _____ _____ ___.
_______ ______ ___ _____ ______ ________ _______ _____.
_________ _________ ______ __________ _______ _________ ______.
__________ ___ ______ ____ __________ ______ ______ ____ ____ ______ ________ _________.
________ ______ ___ ____ ___ ___ ___ ________ _________ _________.
_________ __________ ______ _________ ______ ______ ___ _______ ________ ______ ___ _____.
__________ ____ ______ __________ _______ _________ ___.
__________ ____ _____ ___ _________ _______ ________ _______ ____ _________.
______ ___ _____ __________ _____ ___ _______ ________ ____ ____ _______ ___.
______ ___ _____ ____ _______.
________ ___ ________ __________ ____ __________ __________.
_______ ___ _______ ____ _________ _______ __________.
____ _____ _______ __________ ________ __________ ____ _______.
__________ _______ ___ ________ _____ _______ ____.
_____ ________ ____ _____ ________ ___ __________.
___ _______ ___ _______ ____ __________ __________ __________ _________ ___.
__________ __________ ____ __________ ______.
_______ ________ _______ ______ ________ __________ _________ ______ _____ ________.
________ __________ ____ ______ __________ _____.
______ ____ _____ _______ _________ _______ ___ _____ ______ _________ ______.
_______ _____ __________ ____ ________.
___ ____ _____ ______ ____ _________ ___ ____ _________.
_______ _______ ______ _____ _________ _________ _________ _______ ______ ________.
_________ ____ _____ _________ _______ ______ __________ ____ _______.
_______ ___ _______ _______ __________ _____ _____ ___ _____ ________.
________ __________ ____ ____ ___ ________ _________ _______ ______ _______.
_______ ______ ____ _______ ______ __________ _______ _________ _____ __________ ____.
_____ ______ __________ ________ ___ ________ __________ ____ __________ _________ _______ __________.
____ ___ ________ _________ ______ ______ ______ _____.
__________ _____ _____ _____ __________ ____ ________ ______ __________ ________ _____ __________.
______ _________ ____ ______ _______ _______ _______ ___ _____.
___ _______ ____ ________ ____.
________ _______ ________ ____ _____ _________ _____ _____ ___ ________ ________ ________.
____ _______ ________ ____ ____ _________ ___ ________ _________ ________.
___ ______ ____ ___ ______ __________ __________ __________ _________.
__________ __________ ___ ________ ______.
_________ ____ ________ _________ ____.
_________ ___ ____ ____ ______ ______ _________.
____ ___ ________ __________ __________ ___ ___.
__________ _______ __________ ______ _______.
_______ __________ _______ ___ ___ _______ ______ ________.
________ _______ ________ __________ _______ ____ ____.
___ ________ ______ ______ _________ _______ __________ ______ __________.
_________ ______ _____ _____ ____ ______ _________ _______ ___ ____ _______ ________.
____ _____ _______ ___ ____ _______ _______ ______ ___ ______ ______ ____.
________ _____ _________ ________ __________ ______ ___ __________ __________ ___.
__________ _______ _____ ________ ____ ________.
_______ ___ ________ ___ ____ ______ _________ __________ ________ _________ ________.
_______ _________ _________ _____ ______.
__________ ____ __________ ____ ___ _______ _________ ___ _________ __________.
_______ ______ _____ ________ _______ ____ ___ ________ __________ ________ ________.
___ ________ ________ ___ _____ _________ _________ ___.
_________ _____ __________ _________ ______ ___ _____ ______ _________ _______ __________ __________.
___ ____ ______ ________ _______ _____.
____ _____ ___ ___ ______ _______ _______ __________ _________ _______ _______ ___.
__________ _____ _______ ___ ________.
___ ______ ________ _____ ____ ________ _______ __________ ________ _____.
_____ _________ __________ ______ ___ ______ _________ ___.
____ _____ _____ ________ ________ _______ ____ ___ __________ ___.
____ ___ ____ ___ _______ _______ ________ ______.
_____ ________ ___ _________ _____ __________.
________ ______ ________ ________ _____ ________ ________ ______ ______.
_____ __________ _____ ______ ____ ____ ______ ________ ________.
_____ _____ ________ ___ _________ ______ __________ _______ _______.
_____ _________ ________ ____ _____ __________ _____ ________ _________ __________.
___ _________ _________ _____ ______ ____ __________ __________ __________ ________ ______ ________.
______ _____ __________ _______ _______.
____ __________ _______ _________ ________ _____ _______ ___.
__________ _______ __________ ___ __________ _____ ___ _______ _______ ___ ___ _______.
_____ _________ __________ ____ ______.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
✓ Unlock up to 60% of the answer
✓ No payment required