Budgeting Flashcards
What type of Budget and Approach does Backoffice have?
Backoffice has an annual budget of
What is a rolling budget?
Budgets produced on quarterly/monthly basis, instead of annual budgeting
What is main feature of rolling budget?
-They are flexible so can be easily adjusted if need be
What are the main KPI’s for Budgeting?
-customer satisfaction
-innovation
-production times
What is Benchmarking?
-targets created based on competitor standards/targets
What is Future Focus?
-Focusing on events that happens in future rather than past
What is Innovation?
Encouraging flexibility and new ideas
What is the purpose of innovation
Innovation is encouraged to bring flexibility and new ideas
What is meaning of participation in Budgeting?
Participation is when lower level people are actively involved in budget setting.
What is the problem with Back office’s budget approach?
It is
What are the advantages of beyond budgeting?
-PLANNING is continuous and organisation likely to be proactive
-CUSTOMER FOCUS, targets become challenging and more market focused
-INNOVATION, more ideas and creativity
- PARTICIPATION, managers and lower level people more involved so more motivation
-BETTER INFO SYSTEMS, beyond budgeting creates systems - fast and open info throughout organisation
What is Big Data Analytics?
Data from external sources that can influence budgeting (e.g News & Social media)
What is the significance of Big Data Analytics?
Enhances accuracy and efficiency of budgeting.
What are the limitations of using external sources of info for budgeting?
-external info may be inaccurate
-info may not meet needs of the business for our budget preparation
-info may be out of date
What is Feedfordward Control?
comparing what we expect to happen with forecast and what is CURRENTLY expected to happen
