Budget and costing techniques

Society Business and Career
1

My CFO gave me a task to present an outline of different modern budgeting and costing techinques like Variance reports, Contribution Margin etc. :crying:

I need some name of different costing methods that i can present to my CFO :bash: with its benefits and method of use.

2

ask a gujrati mother.

3

Activity BAsed Costing....chalay gee?

4

chalee gi kya dhoore gai aghar petrol dal dia jay.

Can you tell me about its method or any refernce book.

5

^ ABC is indeed very useful exp. in the manufacturing environment - I've even used it in services with a lil bit of creativity :)

For a budgeting standpoint, you can start by looking into Incremental, Zero-based and Rolling budgets, and then also explore
Monte Carlo simulation techniques in budgeting (these are fun!)

6

ABC can be hell in some environments, depending on teh variety of tasks, and complexity of it, ABC can be hell if the company has not kewpt records of such, donr be surprised I have seen companies who have no clue of their cost structure like they should.

as far as budgeting techniques, does your company do budgeting based on product lines or business units as they should do, or do they do it based on geographical locations and operational sites as some companies still insist on doing.

7

[QUOTE]
*Originally posted by Fraudz: *
ABC can be hell in some environments, depending on teh variety of tasks, and complexity of it, ABC can be hell if the company has not kewpt records of such, donr be surprised I have seen companies who have no clue of their cost structure like they should.

[/QUOTE]

ooooo that brings back some harsh mmories... you're right!

Typically the problem I've experienced is when companies have a hard time justifying costs of administrative or logistical outcomes...

and yes, depending on the project, when documents for the costs incurred are not available, cost assignment formulas may be used, and these aren't always all that accurate.

8

RBB is the buzz word these days. Results Based.

9

wht is Monte Carlo simulation techniques and how we use it.

and any of u know about EVA (economic value added)

10

^ Abay, I thought I was the Aalsi, lekin tu to mujh say bhi ziada lazy nikla.
Chal baitth or yea padh.

http://www.chem.unl.edu/zeng/joy/mclab/mcintro.html

http://www.pitt.edu/~roztocki/abc/abc.htm

11

[QUOTE]
*Originally posted by Njoi: *
and any of u know about EVA (economic value added)
[/QUOTE]

even EVA experts dont completely know EVA :)
You can use a discounted cash flow approach to get to the same conclusion without trying to sell the old school ppl on EVA

12

Hey save yourself time and money, out source it to Anderson Consulting they are very good in cooking books. They got the Enron model.

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How can i contact with them any website or e-mail.

14

[QUOTE]
*Originally posted by Verizon: *
Hey save yourself time and money, out source it to Anderson Consulting they are very good in cooking books. They got the Enron model.
[/QUOTE]

1- AndersEn, not AndersOn

2- It was Arthur Andersen

3- It was not the consulting wing of Arthur Andersen, but the Audit group

4- Andersen Consulting became Accenture way before the Enron Scandal

5- Arthur Andersen is no longer in business, so he cant outsource it to anyone

Pun was good, but full of errors :)

15

Re: Budget and costing techniques

try Hyperion..

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Re: Budget and costing techniques

wht is that, i mean Hyperion

17

Re: Budget and costing techniques

Its an accounting system used for different purposes.. like comparing BS, P/Ls..
theres PSGL as well..

18

Re: Budget and costing techniques

wht are the benefits of this system?