Question Details

ASSIGNMENT PLAN
TOPIC: BUDGET FORECASTING
ASSIGNMENT
Background
At the end of October, the department managers are responsible for submitting their forecasted budgets for funding allocation each year. It is your responsibility to create a new budget for 2010, based on this year- operating budget and actual expenses. The CEO has indicated that some budgets may have to be reduced, due to economic conditions. It is your responsibility to develop your forecasted budget for 2010. You can assume that certain costs may increase by 6% due to inflation and other economic factors. In order to make the best decisions for the company, the CFO is requesting a full budget forecast and a second contingency budget. You can assume that your contingency budget would be 90% of your forecasted budget.
Email from CIO:
From: Elizabeth Marks [mailto:[email protected]] Sent: Wednesday, October 31, 2009 12:07 PM To: 'IT Manager' Subject: RE: 2010 Budget.
It is time to prepare next year- budget. Please have your preliminary budget to me by the end of next week. As you create your budget, please consider the following.
MAJOR CHANGES
Construction was completed on the new Divisional Headquarters building, at the same time, the Divisional Staff was increased by 3% from 200 employees to 206 employees. The construction and staff increase resulted in the addition of new systems, a new Local Area Network, Wide Area Network connectivity, and three IT technicians. The three new IT technicians bring the total IT department headcount to 35.
The following table illustrates the major changes necessary for next year- budget. Attachments to this memo include your estimated budget for 2009 and year-to-date actual figures for 2009 (10 months). Use the budget analysis techniques presented in Chapter 16 and 18 of “Business Management of Telecommunications”.
ASSIGNMENT
Change from 2009 to 2010
Reason
$120,000
Additional salary for three technicians
Additional benefit costs for three technicians. Base on average cost per IT employee.
3.5%
Average IT salary increase
Deliverables - This is what the instructor expects in your submission.
1. Memo, using the template provided in Doc Sharing, addressed to the CFO explaining your forecasted 2010 budget. You should explain which costs would not increase and which costs will increase for 2010. Your discussion should also cover the contingency budget and explain which items were chosen for reduced funding and why those items were chosen.
2. A standard forecast budget based on 2009 forecast and actual numbers.
3. A contingency budget based the 2009 forecast and actual numbers (the contingency budget should be approximately 90% of the forecasted budget.)
MATERIALS AND AIDS
1. Memo from the CIO
2. Memorandum Guide.
3. Budget Forecasting template.
4. Search for references on memo writing.
5. Excerpt discussing memo writing from Schoening, Hank. (2005). Business Capstone Writing Notes. (Used by permission of Author)
6. Course text book, DeVry University library, and Internet access for research.
ASSIGNMENT
ASSIGNMENT CHECKLIST
1. _____ Have I used the correct templates for the memo and the budget?
2. _____ Have I completed the memo header information correctly?
3. _____ Have I stated the memo- purpose clearly and in three sentences or less?
4. _____ Have I included the appropriate major headings and sub-headings (if necessary)?
5. _____ Have I addressed the topics indicated in the instructions - the 2010 budget and items selected for possible reductions?
6. _____ Is my discussion logical, clear, and accurate?
7. _____ Have I included the most important and relevant information?
8. _____ Is my reasoning supported by research or course material?
9. _____ Have I properly cited and referenced any research?
10._____ Have I checked spelling and grammar?
11._____ Have I completed the 2010 forecast budget (information placed in cells highlighted in yellow)?
12._____ Have I completed the 2010 contingency budget (information placed in cells highlighted in yellow)?
13._____ Have I attached or included in the memo the completed 2010 budget worksheets?
Confidential Page 1 5/30/2011
INTEROFFICE MEMORANDUM
TO: [CLICK HERE AND TYPE NAME]
FROM: [CLICK HERE AND TYPE NAME]
SUBJECT: [CLICK HERE AND TYPE SUBJECT]
DATE:
02/27/06
The purpose for the memo goes here. You should state the purpose in three sentences or less. If it takes more than three sentences your purpose is either too broad or it is not properly focused.
MAJOR HEADING
Information about the topic implied by the heading should be placed here. Refer to the “Memo Structure” document to understand what sections are required in an effective memo.
Sub-heading
Sub-headings are not necessary unless they help to further define the discussion and enhance readability.
CONCLUSIONS
State the conclusions supported by the evidence presented in the memo. This section is required for all assignment submittals.
FUTURE ACTION
Explain what the next step is based on your conclusions. This section is required for all assignment submittals.
2
3
Attachments
Detailed information or supporting information for your memo discussion should be placed here. You may not always have attachments but, if you do, place them in this section.

Accounting Assignment Help, Accounting Homework help, Accounting Study Help,  Accounting Course Help