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Analyzing Financial Statements Essay Sample

Analyzing Financial Statements Pages
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Discuss the purpose, advantages, disadvantages, and type of feedback provided by a line item, performance, and program budget in a 350- to 700-word essay.

There are going to be many different advantages and disadvantages of using the line item, performance and program budgeting systems. It all depends on what the organization it looking for and their needs. The line item budgeting system is the most commonly used budgeting system. The main purpose of the line item budgeting system is control of the finances. It is very simple. It is used to control the spending of an organization. Now some of the disadvantages of the line item budgeting system are that it cannot be used by a large organization. It does not give information about how much the organization spends on services. The performance budgeting system is a system that is used by program administrators to manage the cost-efficient and effective budgeting outlays.

The advantage of the performance budgeting system is that the system provides information on the amount of service that will be provided by the organization. Now the disadvantage of the performance budgeting system is that the organizations must employ sophisticated cost analysis techniques. They need to be able to determine the full cost of the program and to derive correct unit costs. The program budgeting system is be able to explain the organizations expenses to the programs, to measure the programs outcomes as well as the cost to the program of achieving outcomes. The performance budgeting system shows the effectiveness of an organization. The advantages of the system are that they provide information about the outcomes of the program and they raise the level of debate from service and efficiency concerns to clients.

Provide a 350- to 700-word response to the following: Identify and describe two types of traditional approaches to fund development, and two types of nontraditional approaches to fund development that are appropriate for the XYZ Corporation, and provide a conclusion of the organization’s current and future financial picture.

There are numerous ways to fund development that an organization could use. You have your traditional way such as fund-raising or special events, and you have your non-traditional ways such as entrepreneurial approach. Traditional ways would be fund raising and specials events. Fund raising you are soliciting funds. An organization can hold campaigns to solicit the funds. Companies can donate funds to the organization. You can also hold special events such as concerts or auctions where all the proceeds go to the organization and everything is donated. Non-traditional ways would be your entrepreneurial approach. You can have a thrift store where a certain amount of the proceeds will go to the organization. A percentage would be chosen when a deal was made on what the organization would receive. You will also have cases where a person who passed away may donate their estate to an organization. SO everything in that household would go to the organization of their choice.

References:

Fisher, Robert L. 2001. “The sea change in nonprofit human services: A critical assessment of outcomes measurement.” Families in Society: The Journal of Contemporary Human Services.” Nov/Dec. Public Budgeting & Finance, Volume 19, Issue 1, pages 68–88, March 1999

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