accounting Essay -- essays research papers

Accounting A)  Ã‚  Ã‚  Ã‚  Ã‚  The budget at Henigen Corporation is an imposed â€Å"top down† budget which fails to consider the need for realistic data and the human interaction essential to an effective budgeting/control process. One cannot know whether or not there are any realistic goals for this company because the president has not given any basis for his goals. Participation of employees in preparation of the budget is minimal and limited to mechanical gathering and manipulation of data. Implementation of the budget will show little eagerness. The budgeting process is the merging of the requirements of all facets of the company on a basis of sound judgment and equity. These specific examples of poor procedures other than the approach and goals are listed below.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The sales by product line should be based upon and accurate sales forecast of potential market. As a result, the sales by product line should have been developed first to derive the sales target rather than the reverse.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Production costs probably would be the easiest and most certain costs to estimate. One could estimate the sales volume needed to cover manufacturing costs plus the cost of other aspects of the operation if they were given variable and fixed production costs. Marketing costs and corporate office expenses cannot be exactly set before the above is accomplished.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The first meeting between the vic...