Budgeting in Nursing Management
Understanding BudgetBudget (Budget) is a plan drawn up systematically, covering all activities of the company are expressed in units (unity) and monetary policies for an extended period of time (period) certain to come.
From the above it appears that the Budget has four elements:· Plan· Covers all activities of the company· Expressed in monetary units· Long time to come
Benefits BudgetBenefits Budget consisted of three principal, namely:· As a working guideline· Which serves as a guide to work and provide direction and simultaneously provide targets to be achieved by the activities of the company at a time when that will come.· As a means of monitoring the workBudget also function as a benchmark, as a means of comparison to evaluate the future realization of the company's activities. By comparing what is stated in the Budget to what is achieved by the realization of the company's work, it can be assessed whether the company has successfully worked or whether less successful work.
As a means of coordinating the workBudget serves as a tool to coordinate the work so that all the parts are contained within the company can support each other, work together well to get to the goals that have been set. Thus the smooth running of the company to be more secure.
Budget Formulation ProcessAs represented described above, the Budget can work well when the commentaries (forecast) contained therein is accurate enough, so it is not much different from the later realization. To be able to perform a more accurate interpretation, is treated as data, information and experiences, which are all factors that must be considered in preparing Budget. Adapaun these factors can be broadly divided into two groups, namely:
Internal factors, namely the data, information and experience contained in the company itself. These factors among others:· Wisdom of companies that deal with issues selling price, terms of payment of goods sold, the selection of distribution channels and so on.· The production capacity of the company.· Workforce owned peruahaan, both in number (quantitative) and the skills and expertise (qualitative).· The working capital of the company.· Other facilities of the company.· These policies related to the implementation of the company's corporate functions, both in the field of marketing, the field of production, in the field of procurement, field administration and field personnel.
Up to certain limits, companies are still able to set and adjust the internal factors with what they want for the future. For example, working capital is now owned Budget is lacking for the period to come, then the company within certain limits can still add to it, for example by requesting a credit to the Bank. Similarly, machines, tools, labor and other facilities, within certain limits are adjusted to what is desired for the coming budget period, either plus or minus. Therefore, the internal factors are often referred to as controlable factors (measurable), the factors within certain limits can still be adjusted with the desire or need for the Budget to come.
External factors, namely the data, information and experiences that are outside the company, but is considered to have an influence on the life of the company. These factors among others:· The state of competition· Rate of population growth· Level of income communities· Level of education of· The distribution of the population· Religion, customs and habits of the people.· Various government policies, whether in the political, economic, social, cultural, and security.· The state of the national and international economy, technological advances, and so on.
Against these external factors, the company is not able to separately set according to what diinginkanya Budget in the coming period. Therefore, external factors are often referred to as un-controlabel factors (not measured), the factors that can not be measured and can not be adapted to the wishes of the company. Consequently perusahaanlah should menyesuaiakan himself, adjusting wisdom-wisdom with those factors.
DEFINITIONS BudgetingBudget in the sense outlined above it can be known that the Budget is the result (output) which is predominantly tafsira commentaries that will be implemented at a time when that will come. Since the Budget is the result (output), the Budget contained in a manuscript compiled regularly and systematically. While the dimaksudka with Budgeting is the process of activities that produce the Budget as a result of work (out-put), as well as the activities related to the implementation of the Budget functions, ie functions work guidelines, work coordination tools and monitoring tools work. In more detail, the activities covered Budgeting include:· Collecting data and information needed to prepare Budget· Processing and analyzing data and information to conduct interpretations in order to construct a Budget.· Prepare Budget and presenting regularly and systematically.· Coordinating the implementation of the Budget· Collecting data and information for monitoring purposes, which is to undertake an assessment (evaluation) of the implementation of the Budget.· Processing and analyzing data to conduct interpretations and conclusions obtained in order to assess (evaluation) of the work that has been carried out, and to formulate policies as a follow-up (follow-up) of these conclusions.
Procedures arranging BudgetBasically the authority and responsibility or compose Budget and other Budgeting implementation, top management is in the hands of the company. This is because the highest leadership perusahaanlah most authoritative and most responsible for the activities of the company as a whole. However, the task of preparing and compiling Budget and Budgeting other activities should not be handled by top management of the company, but may be delegated to other parts of the company. Adapaun anyone or any part of the assigned duties and develop Budget memprsiapkan is highly dependent on the organizational structure of each company. However, the task of preparing the outline and menyususn Budget may be delegated to:
1. The administration, a small part of the company. This is because for small companies, the activities of the company is not overly complex, simple, with a limited scope, so the task of preparation of Budget to be submitted to any one part of the company in question, and do not need to actively involve all parts of the parts that exist in the company.
2. Budget Committee, part of a large company. This is because for large companies, the activities of the company is quite complex, diverse with a wide scope, so the Administration is not possible and no longer able to compose Budget itself without the active participation of other parts of the company. Therefore, the task of preparing Budget needs to involve all elements representing all parts in the company, which sits in the Budget Committee. Budget preparation team is usually headed by the head of the company (eg Deputy Director) with members representing the Marketing Department, Production Department, Section Spending and Staffing Bgaian. In the Budget Committee is conducted discussions about the action plans that will be coming, so the Budget later composed an agreement, in accordance with the conditions, facilities and the ability of each part in an integrated manner. This agreement is important for the implementation of Budget be completely supported by all parts within the company, thus facilitating the creation of a mutually supportive and well coordinated.
Good Budget prepared by the Administration (small companies), as well as those prepared by the Committee on Budget (large), then a Draft Budget or the Draft Budget (tentative budget). The draft Budget is submitted to top management for approval and set apart as a definitive Budget. Before the company authorized by the supreme leader, is still possible to place amendments to the draft, and it is also possible to pembahsan-holding of discussions between top management with the company entrusted with the task of preparing the Draft Budget.Once approved by the top management of the company, the draft Budget has become the definitive Budget, which will serve as a working guideline, as pengkooordinasian tools work and work as a surveillance tool.
Fill BudgetAs mentioned above, a good Budget must cover all activities of the company, so that function Budget (manual labor, work coordination tools and monitoring tools work) can really run well too. Such a comprehensive budget that is often called the Comprehensive Budget (Budget comprehensively).The content of the Comprehensive Budget outline consists of:1. Forecasting Budget (Budget Commentaries), the Budget contains commentaries (forecast) on the activities of the company in the period of time (period) certain to come, as well as interpretations (forecast) on the state or the company's financial position at a given moment to come.
2. Variable Budget (Budget Variable), the Budget that contains or rate of change of cost in cost in rate variability, particularly the cost in-installment includes the cost in "semi-variable", with respect to a change in the productivity of the company.
3. Statistical analysis and mathematical helpers, which analyzes statistics and mathematics that are used to make interpretations (forecast) and used to conduct the assessment (evaluation) in order to conduct oversight of the work. All those analyzes need to be loaded (attached) in the Budget were prepared, so that every time it is known, can be checked and can be assessed whether the methods and analysis used were already correct or needs to be revised with respect to a change in certain factors in time will come later.
4. Reports Budget (Budget Report), the report on the realization of the implementation Budget, which comes with a variety of comparative analysis between the Budget with the realization that, so it can be seen that deviations are positive (favorable) or negative (adverse), it can be seen why causes of these distortions, so that can be drawn some conclusions and some follow-up (follow-up) were immediately necessary. Thus from Budget Reports once can be held assessment (evaluation) of the success or failure of the company for a period of time (period) is concerned.
OPERATING BUDGETAs described above, that one is content Budget Budget Forecasting, which is defined as containing tafsira Budget commentaries (forecast) on the activities of the company in the period of time (period) certain to come, and contains tafsira commentaries ( forecast) on the state or the financial condition of the company at some point in the future.
From understanding the stretcher appears that Budget Forecasting Budget consists of two groups, namely:· Operating Budget (Operating Budget)· Financial Budget (Budget Financial)
Understanding Operating BudgetOperating Budget is a Budget that contains commentaries on the company's activities in the period of time (period) certain to come.
Operating Budget plan of the company's activities for a certain period to come. Basically, the company's activities during the period it covers two sectors, namely:
Sector Income (revenues), was added assets that increase the company's Equity, but not because the new capital injection from its owners, nor is the company's assets increase due to increased debt. Often it is said that income is a condition of achievement earned by the company over the "something" that was given to the other party, or for services rendered to the other party.
Viewed in conjunction with the company's main business, the income can be divided into two sub-sectors, namely:· Sub-sector Main Income (Operating Revenues), is the income received by the company, which originated and is closely related to a core business of the company.
· Sub-sector Income Not Home (Non-Operating Revenues), is the income received by the company, which did not come and did not closely related to the core business of the company, but from the business side of the company.
The cost sector (Expenses), is the reduction of corporate assets Equity resulting in fewer, but not because of the reduction (removal) of capital by its owners, nor is a reduction of assets of the company due to debt reduction. The cost often said that a counter-interpretation is given by the company on "something" received from the other party, or services received from other parties.
Viewed in conjunction with the company's main business cost in can be divided into two sub-sectors, namely:
(A) The cost of Main Sub-sector (Operating Expenses), an installment is a burden borne by the company, which is closely related to the core business of the company.In industrial firms, The cost Main distinguished into three cost in groups, namely:
The cost of plant (Factory Cost), is all of the costs that occur in the environment as well as the place where the production process. The cost-factory cost in this distinguished into three groups, namely:· The cost of Raw Materials (Direct Materials), is an installment consists of all materials is done in the production process, to be transformed into other goods that will be sold.· Direct Labor Wages (Direct Labour), is the wages paid to the company's workforce directly processing raw materials, to be transformed into other goods that will be sold.· The cost of Indirect Factory (Factory Overhead), is all of the costs contained in the plant, but not directly related to the activities of the production process, which is the process of converting raw materials into other materials that will be sold. The cost is included in the Indirect Factory, among others The cost of Materials Assistant (Indirect Materials), Wage Labor Indirect (Indirect Labour), The cost of Plant Maintenance (Factory Maintenance) The cost of Repair Factory (Factory Repair), Depreciation Building Plant (Depreciation of Factory Equipment), The cost of Electric Factory (Factory Heat and Light), and so on.
The cost of administration (Administration Expenses), is all of the costs that occur in the environment as well as the company's administrative offices, as well as other cost in-cost in nature for the purposes of the company as a whole. The cost of the administrative group includes, among others:· Employee Salaries Office (Office Salaries), is the salary paid to the administrative office karyawandi.· Salary Maintenance Office (Office Manintenance), is the cost in space and equipment for the maintenance of administrative offices.· The cost of repair office (Office Repair), is for the repair cost in administrative office space and equipment.· Depreciation of Office Equipment (Depreciation of Office Furniture), is the depreciation expense for the equipment in the administration office.· Office Building Depreciation (Depreciation of Office Building), is depreciation on buildings (building) administration office.· The cost of Electricity Office (Office Heat and Light), is the cost in electricity for administrative offices.· The cost of Telephone Office (Office Telephone), is the cost in the phone for the purposes of the administration.· The cost of Insurance Office (Office Insurance), is the cost of insurance for buildings and equipment administrative offices.· The cost of Office Supplies (Office Supplies), is the cost for the purposes of writing and other small necessities in the administrative offices, such as paper, carbon, adhesives, inks, matera, stamps, and so on.
The cost of sales (Selling Expenses), are all costs that occur in the environment as well as the Sales Department, as well as the cost in-cost in other related activities undertaken by the Sales Department. The cost is included in the sale are:· Salary Sales: (Store Salaries), is the salary paid to the employees in the Sales Department.· The cost of maintenance of Sale (Store Maintanance), is the cost in space and equipment for the maintenance of Sales.· The cost of Repair Parts Sales (Store Repair), is the cost in space and equipment for the repair of Sales.· Sales of Equipment Depreciation (Depreciation of Store Furnitures), is the depreciation expense on equipment sales section.· Depreciation Building Part Sales (Depreciation of Store Building), is depreciation on buildings (buildings) Parts Sales.· The cost of Electricity Sales Department (Store Heat and Light), is the cost in electricity for the purpose of sale.· The cost of Number of Sales (Store Telephone), is the cost in the phone for the purpose of sale.· The cost of Insurance Sales (Insurance Store), is the insurance cost in the sale of buildings and equipment.· The cost of Supplies Sales Department (Store Suplieses), is the cost in for purposes other small sale section, such as paper, carbon, ink, string, and so on.· The cost of advertisements (Advertising), is the cost in advertising in various media for the purpose of increasing sales.
(A). Sectors The cost of Open Home (Non-Operating Expenses), an installment is a burden borne by companies, which are not closely related to the core business prusahaan.
From the above description and pembahsan known that the Operating Budget plan of the company's activities for a certain period to come, both activities relating to the income or activities relating to the costs.In the accounting, the activities relating to the income-related cost in this sector at the end of the period set forth in the Consolidated Profit and Loss (Income Statement) company. When during the work in the period, income greater than beayayang burden to be borne, the company earned a profit, whereas if during work in the period, the income received less than the cost in the burden to be borne, the company suffered a loss. Operating Budget is therefore often referred to as the Budget Income Statement (Profit and Loss Budget).
On the basis of the completeness of its contents, Income Statement Budget can be divided into two kinds, namely:
(1). Master Budget Income Statement (Profit and Loss Budget Parent) Budget is about revenue and cost in the company, which contains commentaries in general (global) and less elaborated in more detail, such as interpretations semiannual, annual, and so on.
(2). Supporting Budget Income Statement (Profit and Loss Budget Support), is the Budget of income and cost in the company, which contains interpretations are more detailed, such as detailed from time to time (monthly), detailed in sections (departments) are there and so . Thus this Budget Income Statement Supporting the elaboration and further details of the Master Budget Income Statement which contains only interpretations outline only, it is not yet possible Budget function. In order to serve as a guideline Budget work, as a means of coordinating the work and working as a supervisor, the Budget should be prepared in a clear and detailed.
Stages of Preparation of the Operating BudgetOperating Budget in detail arranged in the Income Statement Supporting Budget, which basically contains the Budget of income, namely the sale of Budget and Budget-Budget about the cost in, the Budget and Production Budget The cost of the Administration and Budget The cost of sales.Between Budget of income with Budget-Budget The cost of these interrelationships have a very close relationship. On the one hand, the size of the sales (income) may be determined (influenced) by the size of the production (cost of $), but on the other hand, the amount of production (cost of $) may be precisely determined (affected) by the amount of sales. In other words, there are two alternative possibilities about the reciprocal relationship between the production penjualam, namely:
(A) First AlternativeThe amount of sales is determined by the amount of production. This means that how many of the company's sales over the coming period is determined by how the amount of goods that can be produced company during the period. Thus, if during the coming period, the company is able to produce goods in large quantities, the amount was exactly the amount of sales that the company will be conducted in the period. Conversely, if during the coming period, the company is only able to produce goods in small amounts, then a bit also the company's sale to be conducted during the period.
(B). The second alternativeThe amount of production is precisely determined by the amount of the sale. This means that the number of items to be manufactured company during the coming period is determined by how the amount of goods that can be sold (marketed) by the company during the period. Thus, if during the coming period, the company is able to sell (market) goods in large quantities, the amount of production was exactly what the company will do, in that period. Conversely, if during the coming period the company was only able to sell (market) goods in small quantities, so small amounts of production was exactly what the company will do in the coming period.
Understanding BudgetBudget (Budget) is a plan drawn up systematically, covering all activities of the company are expressed in units (unity) and monetary policies for an extended period of time (period) certain to come.
From the above it appears that the Budget has four elements:· Plan· Covers all activities of the company· Expressed in monetary units· Long time to come
Benefits BudgetBenefits Budget consisted of three principal, namely:· As a working guideline· Which serves as a guide to work and provide direction and simultaneously provide targets to be achieved by the activities of the company at a time when that will come.· As a means of monitoring the workBudget also function as a benchmark, as a means of comparison to evaluate the future realization of the company's activities. By comparing what is stated in the Budget to what is achieved by the realization of the company's work, it can be assessed whether the company has successfully worked or whether less successful work.
As a means of coordinating the workBudget serves as a tool to coordinate the work so that all the parts are contained within the company can support each other, work together well to get to the goals that have been set. Thus the smooth running of the company to be more secure.
Budget Formulation ProcessAs represented described above, the Budget can work well when the commentaries (forecast) contained therein is accurate enough, so it is not much different from the later realization. To be able to perform a more accurate interpretation, is treated as data, information and experiences, which are all factors that must be considered in preparing Budget. Adapaun these factors can be broadly divided into two groups, namely:
Internal factors, namely the data, information and experience contained in the company itself. These factors among others:· Wisdom of companies that deal with issues selling price, terms of payment of goods sold, the selection of distribution channels and so on.· The production capacity of the company.· Workforce owned peruahaan, both in number (quantitative) and the skills and expertise (qualitative).· The working capital of the company.· Other facilities of the company.· These policies related to the implementation of the company's corporate functions, both in the field of marketing, the field of production, in the field of procurement, field administration and field personnel.
Up to certain limits, companies are still able to set and adjust the internal factors with what they want for the future. For example, working capital is now owned Budget is lacking for the period to come, then the company within certain limits can still add to it, for example by requesting a credit to the Bank. Similarly, machines, tools, labor and other facilities, within certain limits are adjusted to what is desired for the coming budget period, either plus or minus. Therefore, the internal factors are often referred to as controlable factors (measurable), the factors within certain limits can still be adjusted with the desire or need for the Budget to come.
External factors, namely the data, information and experiences that are outside the company, but is considered to have an influence on the life of the company. These factors among others:· The state of competition· Rate of population growth· Level of income communities· Level of education of· The distribution of the population· Religion, customs and habits of the people.· Various government policies, whether in the political, economic, social, cultural, and security.· The state of the national and international economy, technological advances, and so on.
Against these external factors, the company is not able to separately set according to what diinginkanya Budget in the coming period. Therefore, external factors are often referred to as un-controlabel factors (not measured), the factors that can not be measured and can not be adapted to the wishes of the company. Consequently perusahaanlah should menyesuaiakan himself, adjusting wisdom-wisdom with those factors.
DEFINITIONS BudgetingBudget in the sense outlined above it can be known that the Budget is the result (output) which is predominantly tafsira commentaries that will be implemented at a time when that will come. Since the Budget is the result (output), the Budget contained in a manuscript compiled regularly and systematically. While the dimaksudka with Budgeting is the process of activities that produce the Budget as a result of work (out-put), as well as the activities related to the implementation of the Budget functions, ie functions work guidelines, work coordination tools and monitoring tools work. In more detail, the activities covered Budgeting include:· Collecting data and information needed to prepare Budget· Processing and analyzing data and information to conduct interpretations in order to construct a Budget.· Prepare Budget and presenting regularly and systematically.· Coordinating the implementation of the Budget· Collecting data and information for monitoring purposes, which is to undertake an assessment (evaluation) of the implementation of the Budget.· Processing and analyzing data to conduct interpretations and conclusions obtained in order to assess (evaluation) of the work that has been carried out, and to formulate policies as a follow-up (follow-up) of these conclusions.
Procedures arranging BudgetBasically the authority and responsibility or compose Budget and other Budgeting implementation, top management is in the hands of the company. This is because the highest leadership perusahaanlah most authoritative and most responsible for the activities of the company as a whole. However, the task of preparing and compiling Budget and Budgeting other activities should not be handled by top management of the company, but may be delegated to other parts of the company. Adapaun anyone or any part of the assigned duties and develop Budget memprsiapkan is highly dependent on the organizational structure of each company. However, the task of preparing the outline and menyususn Budget may be delegated to:
1. The administration, a small part of the company. This is because for small companies, the activities of the company is not overly complex, simple, with a limited scope, so the task of preparation of Budget to be submitted to any one part of the company in question, and do not need to actively involve all parts of the parts that exist in the company.
2. Budget Committee, part of a large company. This is because for large companies, the activities of the company is quite complex, diverse with a wide scope, so the Administration is not possible and no longer able to compose Budget itself without the active participation of other parts of the company. Therefore, the task of preparing Budget needs to involve all elements representing all parts in the company, which sits in the Budget Committee. Budget preparation team is usually headed by the head of the company (eg Deputy Director) with members representing the Marketing Department, Production Department, Section Spending and Staffing Bgaian. In the Budget Committee is conducted discussions about the action plans that will be coming, so the Budget later composed an agreement, in accordance with the conditions, facilities and the ability of each part in an integrated manner. This agreement is important for the implementation of Budget be completely supported by all parts within the company, thus facilitating the creation of a mutually supportive and well coordinated.
Good Budget prepared by the Administration (small companies), as well as those prepared by the Committee on Budget (large), then a Draft Budget or the Draft Budget (tentative budget). The draft Budget is submitted to top management for approval and set apart as a definitive Budget. Before the company authorized by the supreme leader, is still possible to place amendments to the draft, and it is also possible to pembahsan-holding of discussions between top management with the company entrusted with the task of preparing the Draft Budget.Once approved by the top management of the company, the draft Budget has become the definitive Budget, which will serve as a working guideline, as pengkooordinasian tools work and work as a surveillance tool.
Fill BudgetAs mentioned above, a good Budget must cover all activities of the company, so that function Budget (manual labor, work coordination tools and monitoring tools work) can really run well too. Such a comprehensive budget that is often called the Comprehensive Budget (Budget comprehensively).The content of the Comprehensive Budget outline consists of:1. Forecasting Budget (Budget Commentaries), the Budget contains commentaries (forecast) on the activities of the company in the period of time (period) certain to come, as well as interpretations (forecast) on the state or the company's financial position at a given moment to come.
2. Variable Budget (Budget Variable), the Budget that contains or rate of change of cost in cost in rate variability, particularly the cost in-installment includes the cost in "semi-variable", with respect to a change in the productivity of the company.
3. Statistical analysis and mathematical helpers, which analyzes statistics and mathematics that are used to make interpretations (forecast) and used to conduct the assessment (evaluation) in order to conduct oversight of the work. All those analyzes need to be loaded (attached) in the Budget were prepared, so that every time it is known, can be checked and can be assessed whether the methods and analysis used were already correct or needs to be revised with respect to a change in certain factors in time will come later.
4. Reports Budget (Budget Report), the report on the realization of the implementation Budget, which comes with a variety of comparative analysis between the Budget with the realization that, so it can be seen that deviations are positive (favorable) or negative (adverse), it can be seen why causes of these distortions, so that can be drawn some conclusions and some follow-up (follow-up) were immediately necessary. Thus from Budget Reports once can be held assessment (evaluation) of the success or failure of the company for a period of time (period) is concerned.
OPERATING BUDGETAs described above, that one is content Budget Budget Forecasting, which is defined as containing tafsira Budget commentaries (forecast) on the activities of the company in the period of time (period) certain to come, and contains tafsira commentaries ( forecast) on the state or the financial condition of the company at some point in the future.
From understanding the stretcher appears that Budget Forecasting Budget consists of two groups, namely:· Operating Budget (Operating Budget)· Financial Budget (Budget Financial)
Understanding Operating BudgetOperating Budget is a Budget that contains commentaries on the company's activities in the period of time (period) certain to come.
Operating Budget plan of the company's activities for a certain period to come. Basically, the company's activities during the period it covers two sectors, namely:
Sector Income (revenues), was added assets that increase the company's Equity, but not because the new capital injection from its owners, nor is the company's assets increase due to increased debt. Often it is said that income is a condition of achievement earned by the company over the "something" that was given to the other party, or for services rendered to the other party.
Viewed in conjunction with the company's main business, the income can be divided into two sub-sectors, namely:· Sub-sector Main Income (Operating Revenues), is the income received by the company, which originated and is closely related to a core business of the company.
· Sub-sector Income Not Home (Non-Operating Revenues), is the income received by the company, which did not come and did not closely related to the core business of the company, but from the business side of the company.
The cost sector (Expenses), is the reduction of corporate assets Equity resulting in fewer, but not because of the reduction (removal) of capital by its owners, nor is a reduction of assets of the company due to debt reduction. The cost often said that a counter-interpretation is given by the company on "something" received from the other party, or services received from other parties.
Viewed in conjunction with the company's main business cost in can be divided into two sub-sectors, namely:
(A) The cost of Main Sub-sector (Operating Expenses), an installment is a burden borne by the company, which is closely related to the core business of the company.In industrial firms, The cost Main distinguished into three cost in groups, namely:
The cost of plant (Factory Cost), is all of the costs that occur in the environment as well as the place where the production process. The cost-factory cost in this distinguished into three groups, namely:· The cost of Raw Materials (Direct Materials), is an installment consists of all materials is done in the production process, to be transformed into other goods that will be sold.· Direct Labor Wages (Direct Labour), is the wages paid to the company's workforce directly processing raw materials, to be transformed into other goods that will be sold.· The cost of Indirect Factory (Factory Overhead), is all of the costs contained in the plant, but not directly related to the activities of the production process, which is the process of converting raw materials into other materials that will be sold. The cost is included in the Indirect Factory, among others The cost of Materials Assistant (Indirect Materials), Wage Labor Indirect (Indirect Labour), The cost of Plant Maintenance (Factory Maintenance) The cost of Repair Factory (Factory Repair), Depreciation Building Plant (Depreciation of Factory Equipment), The cost of Electric Factory (Factory Heat and Light), and so on.
The cost of administration (Administration Expenses), is all of the costs that occur in the environment as well as the company's administrative offices, as well as other cost in-cost in nature for the purposes of the company as a whole. The cost of the administrative group includes, among others:· Employee Salaries Office (Office Salaries), is the salary paid to the administrative office karyawandi.· Salary Maintenance Office (Office Manintenance), is the cost in space and equipment for the maintenance of administrative offices.· The cost of repair office (Office Repair), is for the repair cost in administrative office space and equipment.· Depreciation of Office Equipment (Depreciation of Office Furniture), is the depreciation expense for the equipment in the administration office.· Office Building Depreciation (Depreciation of Office Building), is depreciation on buildings (building) administration office.· The cost of Electricity Office (Office Heat and Light), is the cost in electricity for administrative offices.· The cost of Telephone Office (Office Telephone), is the cost in the phone for the purposes of the administration.· The cost of Insurance Office (Office Insurance), is the cost of insurance for buildings and equipment administrative offices.· The cost of Office Supplies (Office Supplies), is the cost for the purposes of writing and other small necessities in the administrative offices, such as paper, carbon, adhesives, inks, matera, stamps, and so on.
The cost of sales (Selling Expenses), are all costs that occur in the environment as well as the Sales Department, as well as the cost in-cost in other related activities undertaken by the Sales Department. The cost is included in the sale are:· Salary Sales: (Store Salaries), is the salary paid to the employees in the Sales Department.· The cost of maintenance of Sale (Store Maintanance), is the cost in space and equipment for the maintenance of Sales.· The cost of Repair Parts Sales (Store Repair), is the cost in space and equipment for the repair of Sales.· Sales of Equipment Depreciation (Depreciation of Store Furnitures), is the depreciation expense on equipment sales section.· Depreciation Building Part Sales (Depreciation of Store Building), is depreciation on buildings (buildings) Parts Sales.· The cost of Electricity Sales Department (Store Heat and Light), is the cost in electricity for the purpose of sale.· The cost of Number of Sales (Store Telephone), is the cost in the phone for the purpose of sale.· The cost of Insurance Sales (Insurance Store), is the insurance cost in the sale of buildings and equipment.· The cost of Supplies Sales Department (Store Suplieses), is the cost in for purposes other small sale section, such as paper, carbon, ink, string, and so on.· The cost of advertisements (Advertising), is the cost in advertising in various media for the purpose of increasing sales.
(A). Sectors The cost of Open Home (Non-Operating Expenses), an installment is a burden borne by companies, which are not closely related to the core business prusahaan.
From the above description and pembahsan known that the Operating Budget plan of the company's activities for a certain period to come, both activities relating to the income or activities relating to the costs.In the accounting, the activities relating to the income-related cost in this sector at the end of the period set forth in the Consolidated Profit and Loss (Income Statement) company. When during the work in the period, income greater than beayayang burden to be borne, the company earned a profit, whereas if during work in the period, the income received less than the cost in the burden to be borne, the company suffered a loss. Operating Budget is therefore often referred to as the Budget Income Statement (Profit and Loss Budget).
On the basis of the completeness of its contents, Income Statement Budget can be divided into two kinds, namely:
(1). Master Budget Income Statement (Profit and Loss Budget Parent) Budget is about revenue and cost in the company, which contains commentaries in general (global) and less elaborated in more detail, such as interpretations semiannual, annual, and so on.
(2). Supporting Budget Income Statement (Profit and Loss Budget Support), is the Budget of income and cost in the company, which contains interpretations are more detailed, such as detailed from time to time (monthly), detailed in sections (departments) are there and so . Thus this Budget Income Statement Supporting the elaboration and further details of the Master Budget Income Statement which contains only interpretations outline only, it is not yet possible Budget function. In order to serve as a guideline Budget work, as a means of coordinating the work and working as a supervisor, the Budget should be prepared in a clear and detailed.
Stages of Preparation of the Operating BudgetOperating Budget in detail arranged in the Income Statement Supporting Budget, which basically contains the Budget of income, namely the sale of Budget and Budget-Budget about the cost in, the Budget and Production Budget The cost of the Administration and Budget The cost of sales.Between Budget of income with Budget-Budget The cost of these interrelationships have a very close relationship. On the one hand, the size of the sales (income) may be determined (influenced) by the size of the production (cost of $), but on the other hand, the amount of production (cost of $) may be precisely determined (affected) by the amount of sales. In other words, there are two alternative possibilities about the reciprocal relationship between the production penjualam, namely:
(A) First AlternativeThe amount of sales is determined by the amount of production. This means that how many of the company's sales over the coming period is determined by how the amount of goods that can be produced company during the period. Thus, if during the coming period, the company is able to produce goods in large quantities, the amount was exactly the amount of sales that the company will be conducted in the period. Conversely, if during the coming period, the company is only able to produce goods in small amounts, then a bit also the company's sale to be conducted during the period.
(B). The second alternativeThe amount of production is precisely determined by the amount of the sale. This means that the number of items to be manufactured company during the coming period is determined by how the amount of goods that can be sold (marketed) by the company during the period. Thus, if during the coming period, the company is able to sell (market) goods in large quantities, the amount of production was exactly what the company will do, in that period. Conversely, if during the coming period the company was only able to sell (market) goods in small quantities, so small amounts of production was exactly what the company will do in the coming period.
