【正文】 Availability of substitute productss very important to remember that. The other thing is that people are natural optimists: really, most of us are. If you ask people Will the weather be better next month than it is this month?, nine out of ten people will tell you yes, because they want it to be—not because they necessarily believe it will be. And if you ask: will business be better next month or in five years39。171。Activitybased costing (ABC)Your pany may use activitybased costing (ABC) to allocate costs. Activitybased costing allows panies to more precisely identify overhead costs associated with producing revenue. Instead of allocating overhead costs to products based on broad measures such as revenue or production volume, ABC starts with the cost of resources, allocates these costs to activities, and then allocates the cost of activities to products. Activities may be broadly defined (such as managing purchasing) or narrowly defined (such as managing purchasing for research and development). Maintaining an ABC system requires managers and employees to maintain detailed information about how much of their time is devoted to particular activities.171。 Shipping187。 Previous |Nexts a measure of risk about the number and almost all things we deal with are constructs. The bottom line of a pany39。Related TopicFinance EssentialsEvaluating management39。 Previous |Next: Learn Understand what budgets are and how the budgeting process works Managing subsequent business activities to achieve budgeted resultsIf you have profit and loss responsibility, the financial results of your division or business unit versus the budget may be a key factor in evaluating your job performance, and may also be tied to your pensation. An understanding of the basics of budgeting and the budget process is, therefore, essential to creating realistic budgets that will later serve as performance benchmarks. Moreover, if you are skilled at selling the budget within your organization and negotiating promises during the budgeting process, you will be more likely to see your budget requests met. 171。A as a percentage of sales = $20,000/$120,000 = %s a difficult thing to do. One thing you can always do is ask: Well, how would this number look if things were really different? So, you subject the thing to stress and with key numbers—even if you do it informally—you should always do that. Almost everything you do depends on understanding numbers, and all numbers can be difficult to understand. So interpret numbers with care, as they all have a certain risk attached to them, and should be treated with the proper respect.Sir Peter MiddletonBarclays GroupSir Peter Middleton enjoyed a long and distinguished career in HM Treasury spanning 30 years, ultimately ascending to bee Permanent Secretary from 1983 to 1991.He spent the next 13 years with Barclays as Group Deputy Chairman and Executive Chairman of its investment bank, BZW. In 1997 he became Chairman of Barclays Capital.In May 1998 he relinquished his executive responsibilities, but remained a NonExecutive Director of Barclays and Barclays Bank. Later that year he resumed the helm following the unexpected resignation of the Chief Executive.He was then appointed Group Chairman in April 1999, and in October stepped down as Group Chief Executive following the appointment of Matthew Barrett. He left Barclays in late 2004.Sir Peter Middleton took on the Chairmanship of Camelot, the operator of The National Lottery, in September 2004.He is also Deputy Chairman of United Utilities, and is on the Board of the National Institute of Economic and Social Research.171。s fiscal year.Rolling budgetThe budget is continuously updated so that the time frame remains stable while the actual period covered by the budget changes. For example, as each month passes, a oneyear rolling budget would be extended by one month so that there would always be a oneyear budget in place.Forecast valuesStatic budget(traditional)Presents one forecast for a given time period and is not changed during the life of the budget.Flexible budgetBudgeted revenues and costs are adjusted during the budget period according to predetermined variances between the budgeted and actual output and revenue.Forecasting processIncremental budgeting(traditional)The previous period39。 Marketing and advertisings pany decreases production to 400 units, what happens to the corresponding fixed and variable costs?The fixed costs increase, while the variable costs remain the same.Not the best choice. Actually, a 100 unit decrease in production would lower the variable costs (the costs that change in direct proportion to production). This decrease would not affect fixed costs. For instance, Sophie39。t decide to develop its own ABC or ABB system. But when the circumstances are right, activitybased approaches to understanding the economic dynamics of an organization provide longterm planning benefits.171。ve been in, and ever since I39。 Spencer.171。s sales are $75,000, the annual run rate ($75,000 multiplied by 12 months) is $900,000. Annual data may be most appropriate for forecasting。s Senior Vice President, Sales and Marketing. In 1989 he moved up to bee Deputy Chairman of Hilton UK, and Executive Vice President, Hilton International.He joined Stakis as Chief Executive in 1991. Eight years later the pany was acquired by Hilton Group for around 163。Personal InsightsBeware of optimistic forecastsSee AlsoTips for setting assumptionsBudget preparation checklistPreparing an Operating Budget—Goals and AssumptionsSetting assumptionsBeware of optimistic forecastsPersonal InsightOne of the strangest things that I39。 More precise allocation of costs to staff responsibilitiesThe disadvantage of this approach is that it can be costly and plex to establish, so that it may not be worth the trouble for a small pany with few products or services. It also has