COSTS AND BUDGET

COSTOS Y PRESUPUESTOS

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COSTS AND BUDGET by Mind Map: COSTS AND BUDGET

1. INFORMATION AND HISTORIC DATA

1.1. Future Period Projections

1.2. Quantitive Information

1.3. Monetary Information

2. A little bit of HISTORY

2.1. XVIII CENTURY

2.1.1. to present GREAT BRITAIN EXPENSES

2.2. XIX CENTURY

2.2.1. EE.UU AND FRANCE

2.2.1.1. To control public expenditures

2.3. XX CENTURY

2.3.1. PRIVATE COMPANIES

2.3.1.1. To control operational costs and expenses

3. DIAGNOSE

3.1. EXTERNAL FACTORS

3.1.1. ENVIRONMENT

3.1.1.1. Government Policies

3.1.1.2. Economic circumstances

3.1.1.3. Competition

3.1.1.4. Marketing Policies

3.2. INTERNAL FACTORS

3.2.1. WEAKNESSES AND STRENGHTS to compete

3.2.1.1. prices

3.2.1.2. product quality

3.2.1.3. Services Distribution channels

3.2.1.4. Technological updates

3.2.1.5. Positioning

3.2.1.6. Financial situation

4. THE FOUNDATION OF THE FINANCIAL STATEMENTS

4.1. TO PREVENT ECONOMIC CONDITIONS

4.1.1. INDEBTEDNESS

4.1.2. LIQUIDITY

4.1.3. TRANSACTIONS NATURE

4.1.4. MOVILIZATION OF INVESTED FUNDS

5. ADVANTAGES

5.1. Know your required resources

5.2. Get alternatives for planned activities

5.3. financial information to make better decisions

5.4. Better control on Materials, labour and indirect manufacturing expenses.

5.5. Balance the different company activities

5.6. Clarity on goals about Income, Costs and Expenses

5.7. Planning and control of Operating expenses and production costs

6. DISADVANTAGES

6.1. Budgets with a high level of subjectivity

6.2. Costly implementation that requires time

6.3. Everyone in the company must compromise to make it work

6.4. Administrators rigidity trying to complete the exact budgeted goals

7. ADMINISTRATIVE FUNCTIONS

7.1. Planning

7.2. Organization

7.3. Coordination

7.4. Control

7.5. Direction

8. SACRIFICED OR LOST RESOURCES TO OBTAIN AN SPECIFIC BENEFIT

8.1. AFFECTS BALANCE

8.2. CAN BE RECOVERED

9. DIRECT COSTS

9.1. IDENTIFIABLE

9.2. MEASURABLE

9.3. REPRESENTATIVE

9.4. Demand control by the Company that dispenses them

10. INDIRECT COSTS

10.1. Free of Supervision

10.2. AN OUTLAY

11. INVESTMENT COSTS

11.1. MATERIALS

11.2. LABOUR

11.3. MACHINERY

12. REPLACEMENT COSTS

12.1. DISPLACEMENT OF ALTERNATIVES

13. INVOLVED COSTS

13.1. REFLECT INVESTMENT VALUES IN A SPECIFIC TIME LAPSE

14. FACTORY OVERHEAD COSTS

14.1. TO DETERMINE THE ELABORATION VALUE OF THE FINISHED PRODUCTS

15. TOTAL COSTS

15.1. PRODUCTION COST

15.2. DISTRIBUTION COST

15.3. ADMINISTRATIVE COST

16. UNIT PRODUCTION COST

16.1. DIRECT MATERIAL

16.2. DIRECT LABOUR

16.3. INDIRECT PRODUCTION COSTS

17. CLASIFICATION

17.1. ACCORDING TO THEIR ACTIVITY

17.2. ACCORDING TO THE GENERIC AREAS OF ACTIVITY TO WHICH THEY CORRESPOND