Accounting For Managers Example

Accounting For Managers Example Accounting For Managers – Coursework Example Outsourcing/Offshoring and Re-Verticalization 5th April Outsourcing Offshoring and Reverticalization Emergently, U.S. companies are shifting their focus from outsourcing and offshoring of their operations and subsequently relocating them to the United States. According to Noreen, Brewer, and Garrison (2014), the reversal of the offshoring and outsourcing practice has gained prominence as the leading companies opt to re-strategize their operations by relocating foreign subsidiaries back into the country. This essay is aimed at discussing the advantages and disadvantages of outsourcing and offshoring versus the re-establishment of companies back into the United States. Outsourcing/ OffshoringAdvantages Outsourcing and offshoring practices have been characterized by key advantages that have led to their widespread adoption. Outsourcing enables companies to transfer production tasks to specialized vendors with the expertise and resources in a particular field. The model therefore leads to high quality products and saving on time. In addition, offshoring facilitates steady growth with limited overhead costs (Noreen et al. 2014). Through offshoring, firms are exposed to low-cost labor and readily available raw materials. On the other hand, outsourcing enhances risk sharing as companies shift selected responsibilities to other vendors. In relation to corporate tax, foreign subsidiaries have provisions to defer paying corporate tax until the earnings are transferred back into the United States. Subsequently, the demerits of outsourcing and offshoring practices have been the focus of public debate in light of the recent economic recession.Reverticalization of Outsourcing and Offshoring Offshoring majorly leads to the transfer of employment opportunities to the emergent market. This is in contrast to the emergent trend of re-verticalization that is rooting for the relocation of key companies into the US. Re-verticalization positively contributes to the creation of job o pportunities in the country and revitalization of the economy through the 35 % corporate tax (R. Hira & A. Hira, 2008). The relocation of firms in the US further underlines effective management of confidential data by eliminating third parties as opposed to offshoring that majorly avails recruitment and payroll information to offshoring vendors. Re-verticalization further eludes risks associated with hidden costs resulting from international transactions and contracts that add up to the overhead costs. Consequently, re-verticalization of the key operations of companies also advances the company’s focus on customers. With offshoring, vendors engaged with numerous organizations thereby failing to meet client-specific needs of an organization (R. Hira & A. Hira, 2008). In contrast, re-verticalization concentrates on the core operations of an institution based on corporate and business strategy of the company. ReferencesHira, R., & Hira, A. (2008). Outsourcing America: The true c ost of shipping jobs overseas and what can be done about it. New York: Amacom.Noreen, E. W., Brewer, P. C., & Garrison, R. H. (2014). Managerial accounting for managers. S.l.: McGraw-Hill/Irwin. Accounting For Managers Example Accounting For Managers – Coursework Example Relevance of a Budget to an Organization s 14th April Relevance of a Budget to an Organization According to Reimers (2007), financial planning in an organization is underpinned with effective budgeting tools and in this regard he defined a budget as an organization’s quantitative expression of financial plans for a future period that could range between months or years. This essay is aimed at examining the relevance of preparing and utilizing a budget in an organization. Preparation of a budget is requisite in the determination of the capital structure of an organization. Through the application of budgetary tools, management is able to realign effectively financing of assets through the perfect matrix of equity, debt and securities (Garrison et al., 2015). As a result of capital budgeting, the management will be better placed to formulate strategic goals, accurately estimate and forecast cash flows, control and monitor organization’s expenditures. The budget is also i nstrumental in the formulation and amendment of financial policies. According to Reimers (2007), the budget constitutes an integral part in the decision-making framework within an organization. As a decision making tool, the budget explicitly depicts the financial plans of an organization thereby providing a framework for the development of appropriate policies and strategies on future undertakings. Garrison et al., (2015) noted that the importance of a budget is further underlined with its role in organization performance monitoring. Organizations should prepare a budget to facilitate comparability of the actual performance of a firm against the previously forecasted performance. Vis a vis, the budget provides the management with the baseline for the evaluation of the performance of the organization within a specific period. Similarly, based on the organization’s performance, the management is able to evaluate the emergent market trends and strategize on the future performa nce of the firm (Garrison et al., 2015). In addition, organizations should prepare budget in order to reduce uncertainties associated with market trends through effective planning for the limited resources, balancing of inflow and outflow of funds and strategic investment of organization’s income. ReferencesGarrison, R. Noreen, E. and Brewer, P. (2015). Managerial Accounting (15th Edition). New York, U.S: McGraw-Hill/Irwin.Reimers, J. (2007). Financial accounting. Upper Saddle River, N.J.: Prentice Hall.