DescriptionUtilize the provided data along with an Excel template to create supporting and master budget sheets.
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Learning ObjectivesExperience practical preparation of budget sheets as they relate to one entity and time period
Apply problem solving skills by working from story problem data sets Discover the relationships between each budget sheet and its data |
Budget Problem
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Reflection
I didn’t understand the scale of this chapter until I was able to apply each of the elements and budget sheets into this one project. Each budget on its own is valuable but putting them into the whole scheme of budgets is eye-opening. You can also see how many different managers might use different sections of this project for guidance and to make decisions. This project reminded me of preparing financial statements in that each piece of information moves from one ledger to the next and you need information from the beginning to be able to get to the end. Because of this concept, if one number is incorrect it will impact the subsequent budget sheets. I experienced this issue, and because I am not as familiar with budget sheets as a seasoned professional, I had to start over completely to identify the errors. Most of the errors resulted from incorrectly imputing the information from the problem description, not from erroneous calculations. Thoroughly reading the information was critical, and in hindsight I should have written the information down or printed it out and circled the details to separate it from the descriptions. This assignment was easy and difficult at the same time. At first I began the assignment without watching along with the videos. Eventually I went back and watched the videos while I was working on it but that is when I started making mistakes, probably because I mixed up numbers in the video with my own project, I should have made sure to watch them and then thoroughly review my own information. Otherwise the project was very logical and easy to understand, and I would be interested in using something similar with information that is useful for my own purposes in the future. I can imagine that this type of budgeting would be useful for anyone who is in a position of reviewing or creating budgets, specifically anyone in management. I also think anyone who is a specialist in their department would benefit from being familiar with budgets. They could help their company by combining knowledge of their specialty with budget insights from their function as well as other departments or functions to make informed recommendations about their budget and increase efficiency. For example, if a product design specialist noticed that the packaging price per unit was extraordinarily high, they might be able to recommend product design changes that reduced the need for expensive specially shaped packaging.