Homework: Budget Development
Overview
If your organization makes frequent business transactions, one of the tasks you face as a manager is budget preparation. A budget is a tool used for planning and controlling financial resources. It guides your future plan of action in financial terms within a set period of time. A budget does not have to be complex; however, it should support the organization's strategic plan. We will need resources to achieve our goals and objectives.
For this homework, you will focus on the operating budget. An operating budget shows the company's projected revenue and associated expenses for an upcoming period-usually the next year. An operating budget starts with revenue and then shows each expense type. This includes variable costs-or the costs that vary with sales-such as the cost of raw materials and production labor. The operating budget includes fixed costs, such as the monthly rent on office space or the monthly payment for a photocopier lease. The budget also includes operating expenses, such as interest on business loans, and the noncash expense of depreciation. These items enable the company to compute its projected net income and net profit percentage.
Instructions
Imagine you are the health care administrator for a nonprofit clinic, home health agency, or outpatient surgery center. Your first task is to locate the strategic plan for that organization or determine its strategic direction through the vision statement, mission or purpose statement, and strategic priorities or goals. You will also need the audited financial statements for the organization.
Using the information from your research, develop a one-year operating budget for the chosen entity, which will include operating revenues and expenses. Include 1 to 2 pages document to justify the approach you use in constructing the operating budget with the strategic plan or strategic direction.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, and typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.