Acc 556 Assignment 2 Essay

4982 Words May 24th, 2015 20 Pages
Financial Accounting for Managers
Maurice Alexis
Strayer University
Prof. Dr Neil Weiss
March 17, 2015

1-Describe the company that you currently work for, have previously worked for, or would like to work for in the future. Determine at least two (2) compelling reasons that this company should prepare and manage a budget. Predict the two (2) most likely positive and negative financial outcomes for this company if it properly or improperly performs effective budgeting. Biomet 3I is the company I have been working for since 2007. Biomet, Inc. is a medical device headquartered in the Warsaw, Indiana business cluster. This company specializes in reconstructive products for orthopedic surgery, neurosurgery, craniomaxillofacial
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Budgeting has a lot of advantages that can make a company reach his financial goals if it is well planned and controlled. The manager of a patrimonial unit has the possibility of coordinating all of its functions such as supply, production and sales. While indicating the conditions under which the patrimonial unit can achieve the targeted objectives, he is able to provide the necessary information for setting up future actions. The comparison of these targeted objectives with the performance of the patrimonial unit will favor the anticipation of certain difficulties that might be met and the solutions for their prompt counteraction.
If the application of a well- planned and controlled budget can make a company reach its goals, some negative aspects considering as the disadvantages of a budget could lead a company to failure or bankruptcy. The manager can face the risk of having the patrimonial unit’s activity blocked on one single plan of action which aversive the reaction of the employees in the case of unrealistic objectives. Due to the misconceptions of the employees and chiefs of department, the top management can lose control of the numerical action plans where smaller resources will be allotted for the next year if during the current year a

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