Explain what is meant by the time value of money

Assignment Help Finance Basics
Reference no: EM13991460

Budgeting and Forecasting

Part 1

DQ 1

Discuss the relationship between budgeting and planning. How are they related? What differences exist between the two?

DQ 2

Discuss the difference between quantitative and qualitative forecasting. Does one provide a more accurate forecast than the other?

Part 2

DQ 1

Compare linear regression to the moving averages and smoothing techniques used in Part 1. Why is linear regression more appropriate for long-range forecasts?

DQ 2

What is seasonality, and what role does it play in regression analysis?

Part 3

DQ 1

Nonproduction expenses such as marketing, research and development, and general administrative costs can play an important role in a company's ability to meet long-term goals. Discuss how the budgets for each of these costs contribute to the company's success. Which do you think plays the greatest role and why?

DQ 2

What are capital expenditures, and how can they help a company achieve its long-term objectives?

Part 4

DQ 1

Explain what is meant by the time value of money, and discuss its relevance to the capital budgeting process.

DQ 2

Discuss the complications related to creating a forecast and budget for a new business.

Part 5

DQ 1

The sales budget is the starting point for the master budget. Discuss how it is prepared. Why is its accuracy so important?

DQ 2

Discuss how managers can use the cash budget as a monitoring and control tool.

Part 6

DQ 1

A coworker comes to you with the following problem: "I provided my boss a projection of factory overhead using the high-low method. He was unhappy with the results and told me to do more work and not return until I had a lower cost estimate. My initial analysis was based on data points for the last 24 months. By dropping the three highest data points, I was able to get a lower cost." Was what your coworker did unethical? Explain.

DQ 2

The differences identified in variance analysis are often interdependent. A favorable variance in one category may lead to an unfavorable variance in another, and vice versa. Identify and describe an example of interdependent variances, and discuss the trade-off that exists.

Part 7

DQ 1

Discuss the differences in the reports prepared for upper management compared to the reports prepared for lower-level managers. Why do these differences exist?

DQ 2

The sales forecast is often the starting point of the budgeting process. Identify and discuss key assumptions that are made in the creation of the sales forecast. How would you defend these assumptions when presenting your budget to the budget committee?

Reference no: EM13991460

Questions Cloud

Find the dimensions : The perimeter of a rectangle or field is 340 yards. The length is 50 yards longer than the width. Find the dimensions.The smaller of the two sides is_?_many yd.
What change do you want to see in the world : What change do you want to see in the world, and what assets and interest do you have to make change happen in your community?
Which factors can assist in establishing time of death : Which of the following factors can assist in establishing time of death? The type of "lust murderer" who is usually of above-average intelligence, methodical and cunning, and socially skilled, and who tricks victims into situations in which he can ..
Estimate the maximum efficiency of an ideal heat engine : Estimate the maximum efficiency of an ideal (i.e, Carnot) heat engine using a body temperature of 37 degrees Celcius as the high temperature heat source and an ambient temperature of 15 degrees celcius as the low temperature heat sink.
Explain what is meant by the time value of money : Explain what is meant by time value of money, and discuss its relevance to the capital budgeting process. Discuss the complications related to creating a forecast and budget for a new business.
How far up incline does block slide before coming to rest : A block is given an inital speed of 5m/s up a frictionless 20degree incline. how far up the incline does the block slide before coming to rest? Now suppose the lock is released with the same initial speed as in part a) but from the top of the icli..
Community policing partnerships regarding gang control : For this first article review, you will review a peer-reviewed article that examines community policing partnerships regarding gang control or prevention
Find the work done on the object by the force : A single force acts on a particle-like object of mass m kg in such a way that the position of the object as a function of time is given by x = 3t - 4t2 + t3, with x in meters and t in seconds. Find the work done on the object by the force between ..
How many kilograms of water must pass through the turbines : Suppose the dam is 80% efficient at converting the water's potential energy to electrical energy. How many kilograms of water must pass through the turbines each second to generate 45.0 MW of electricity? This is a typical value for a small hydroe..

Reviews

Write a Review

Finance Basics Questions & Answers

  How will this change in policy affect accounts receivable

Essence of Skunk is considering a change in its credit policy to terms of 3/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?

  What would be the total combined direct labor cost

What would be the total combined direct labor cost for the two months?

  What are the total shortage costs

1.  ABC Company sells 3,177 chairs a year at an average price per chair of $187. The carrying cost per unit is $30.43. The company orders 278 chairs at a time and has a fixed order cost of $64.4 per order. The chairs are sold out before they are rest..

  Throughout recent history mankind has mined natural

throughout recent history mankind has mined natural resources from the ground. your boss peter diamandis wants people

  What is the value of the apple groves

Suppose prices increase at the inflation rate, but costs increase at half the inflation rate. What is the value of the apple groves?

  What is the amount of pelameds interest tax

Suppose the corporate tax rate is 40%. Consider a firm that earns $1000 before interest and taxes each year with no risk. The firm’s capital expenditures equal its depreciation expenses each year, and it will have no changes to its net working capita..

  Explain maximum price that can be paid for the bond

Explain Maximum price that can be paid for the bond and what is the maximum price you should be willing to pay for the bond

  Considering a new automatic copying machine

Evanston Quick-Print Shop is considering a new automatic copying machine that can be purchased for $14,800. Delivery will cost $300 and set-up will cost $500. The machine will be paid for and placed in service Dec 31,1993. It will be depreciat..

  Problem related to yohe telecommunications

Yohe Telecommunications is a multinational corporation that produces and distributes telecommunications technology. Although its corporate headquarters are located in Maitland, Florida, Yohe usually buys its raw materials in several different fore..

  Explain the interactions among market efficiency capital

explain the interactions among market efficiency capital budgeting and the cost of

  Calculate the required rate of return

Calculate the required rate of return, in percentages, for the Wagner Assets Management Group, which holds 4 stocks.

  At what price would you expect the firm to sell

A firm projects an ROE of 20% and it will maintain a plowback ratio of .30. The next year's earning are expected to be $2.0/per share. Assume investors expect 12% rate of return on the stock. Consider the dividends are  expected to grow at a constant..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd