Pretend you are a manager of your favorite manufacturing company (from the Module Three discussion). Discuss how you would use the balanced scorecard to evaluate your company. Be specificd.
I attached below module 3 discussion for reference.
It should be at least 6 paragraph with citations.
Pretend you are a manager of your favorite manufacturing company (from the Module Three discussion). Discuss how you would use the balanced scorecard to evaluate your company. Be specificd. I attached
A Budget is a detailed plan outlining the acquisition and use of financial and other resources over some given period of time. A budget usually represents a plan for future expressed in form of quantitative terms. Budget is critical for effective planning since it contains those process that a company takes in order to achieve a certain desired goal. The benefits associated with budget include the following, first, budget aid a company in planning for its operation. An organization cost, future revenue, and material needed for production are enabled through drafting a budget. A budget enables a company plan for future funds needs in order to facilitate efficient operations. Additionally, a budget helps in coordinating organizational activities of various parts of the organization and to ensure that these parts are in harmony with each other. The budget outline various cost associated with various organization activities and therefore it gives a financial manager methods of controlling expenses and ensuring the company maximizes the resources available in order to improve its overall revenue (Kemp, 2003).Moreover, a budget helps an organization in communicating plans and various responsibilities with an organization. Also, budgets boost motivation among manager because it helps them strive in order to achieve the organizational goals. Besides, Budget acts control tool of cost and expenses as it used by the manager to compared periodical expenses and cost. Also, it aids the manager in evaluating the organization performance in order to determine if the organization is on track. Tesla, Inc design, develop and manufacture and sell high performance fully electric vehicle and energy generation and storage system. Besides, the company also installs and maintains storage system and sells solar electricity. Tesla Inc needs to prepare various budgets in order to have an effective operational process. Some of those budgets which are essential to the company progress include manufacturing cost budget and selling expense budget. Manufacturing cost budget includes Production budget, raw material budgets, direct labor budgets and manufacturing overhead budget (Kemp, 2003). A production budget is very important to Tesla Inc because the company is able to determine the number of units that must be produced. The budget also indicates the required level of inventory needed at the end of the year and number of units if any at the beginning of the year. Tesla Inc must have almost 20 percent of the vehicle fully made before the beginning of the new quarter. Therefore, the company may not run out stock because manufacturing new model of the vehicle requires a long process and therefore having some units on hand it’s good for the future progress of the company. Additionally, the company needs to prepare raw material budgets. This budget determines the number of units of raw material to be purchased. This budget uses production budgets, the required level of ending inventory for raw material and number of units in the beginning inventory. Once numbers of units to be purchased are determined the cost per units is multiplied by a required material in order to determine the budgeted amount of raw material. For example, Tesla Inc needs to budget number units cost of aluminum and other raw material needed like the battery. Also, the company needs to prepare direct labor budgets. Direct labor budget shows a number of direct labor hours and cost of each labor to determine the total cost of direct labor. The company has to determine the number of machine operators and cost of per hours per machine operators and those involve in modeling the aluminum through welding. Manufacturing overhead budget include expected variable and fixed overhead cost for the year. This includes indirect cost of material, labor, maintenance, annual depreciation of machine, supervisory cost, and property taxes and insurance expense. Selling expenses budget include variable and selling expense associated with the delivering the product in the market (Kemp, 2003). Another important budget for Tesla Inc includes a general and administrative budget which details the variable and fixed operating expenses. Telsa Inc incurs the cost of fixed expense associated with salaries of administrative personnel, rent expense and office supplies needed. Besides, the company can prepare cash flow budget. This budget examines the inflows and outflows of cash in the day to day activities. In addition, Tesla Inc may prepare financial budget outlining how the company spends money on a corporate scale including revenue, income, and cost of capital expenditure. Also, the company might prepare a static budget for vehicle showroom. This budget is not affected by volumes of sales it remains fixed. Flexible and static budget is essential for Tesla Inc. The company will use a flexible budget for control and evaluation whereas static budget is essential for forecasting fixed cost for example depreciation, rent, and other costs. References: Kemp, S. (2003). Budgeting for managers. New York: McGraw-Hill. Dugdale, D., & Lyne, S. (2010). Budgeting Practice and Organisational Structure. Burlington: Elsevier Science. Secrett, M., & Secrett, M. (2012). Brilliant budgets and forecasts: Your practical guide to preparing and presenting financial information. Reply to Thread