The instruction to follow is in the browse files. 0 plagiarism. Please zero plagiarism

Your initial post should be at least 80 words on each discussion post and credibly supported by at least one brief cited and referenced current scholarly source no more than 7 years old. The post should focus on current realities. APA format, and references. I need 50 words each on Ques 1 & 2

Week 5 Discussion 1 Peer response

Forum 1: Zero-based budgeting is great for nonprofit organizations.  You must start a zero-based budget with zero and some say using this method takes courage. You must justify and analyze each cycle. Budgets are then built around it. There are some pros and cons with Zero-Based Budgeting. Some of the cons are that there may be changes due to this method and sometimes people just don’t take ease to changes. More disadvantages are the fact that it takes a lot of resources and time making it more complex. Some advantages of zero-based budgeting are cost-efficient and very flexible. According to the five questions in our text and dealing with the mental health population, I would say a zero-based budget a given program activity should be allowed to continue. I say it should only be modified to improve something or make an adjustment for the better somehow. It should be only modified by the organization. I say a budget and limit should be already created on how much they should spend on the project. If they stay within the budget and boundaries it should be alright to spend on the project. Yes, the proposed change or any changes should have approval from within the organization and shouldn’t be a waste of time. Studies showed within the past fifty years the zero-based budget began to be a more popular choice for the Governments to control costs from going too high. (Mukdad Ibrahim, 2019). Places such as Russia have found the zero-based budget more effective for public programming (Anatoly Alekseevich Likhtin, & Evgenia Andreevna Kutergina. 2018). I can see how zero-based budgeting a challenge can be when estimating needs for mental health care. With the zero-based budget, you must be willing and prepared for justifying the economic benefits of services. With zero-based budgeting ZZB, you must also justify every expense before adding it in and that’s not only very detailed and time-consuming, but you must decide if it's worth the trouble.

 

References

Anatoly Alekseevich Likhtin, & Evgenia Andreevna Kutergina. (2018). Zero-Based Budgeting as the Method of Public Programming: Application Possibility in the Modern Social and Economic Conditions. Управленческое Консультирование, 10, 73–82.

Mukdad Ibrahim. (2019). Designing zero-based budgeting for public organizations. Problems and Perspectives in Management, 17(2), 323–333. https://doi-org.proxy-library.ashford.edu/10.21511/ppm.17(2).2019.25

Forum 2: Zero-Based Budgeting is the action of budgeting pertaining to all expenses that have to be justified and collected for every new year term that rolls around, and it is a great benefit for any nonprofit organization agency. Any nonprofit organization begins with you starting with no budget at all which is a zero balance at first until you find ways to fund the nonprofit organization. I believe, that some of the pros that pertain to this type of budget are having a budget that is flexible, focused on operations, lower cost, and having a positively responsible execution to the budget. Taking the lead in what the budget should look like, and being able to say how much you can spend or what you want to cut Now the cons would be getting the nonprofit organization to be on the same page as you and showing how the cost will be flexible in the end. The size of the organization may cause issues and affect the program along with hurt the participants and the employees because of the commitment you have instilled in the organization. Another con that can happen is the nonprofit organization's bosses trying to downplay what you want to do by manipulating the whole program and being a tab bit bias on all of your plans and sacrifices to have a successful organization in the end.

I believe that any given program should be continued in a non-profit agency because it helps others become educated and knowledgeable about different things they want to provide. It may be something that the community will benefit from in the long run. I believe that it should continue to be modified in case there is an issue that has to be corrected or fixed. The organization should be able to put a plan together to determine what it is they want out of the program and make sure that everything is accurate and set before taking action to start the process to make sure it is modified only.  The first thing is to decide on how much they will need to begin by putting a budget together while determining the type of grants that will benefit their organization's programs. Making sure they have enough funds to spare within the budget for all of the things they need, and for everyone involved should last them until the organization ends or the program, they are utilizing ends. I believe that it should continue to be modified in case there is an issue that has to be corrected or fixed. Yes, the proposed change or anything that is utilized has backing from different individuals like the Board of Directors, Stakeholders, or anyone else within the organization because they are a part of what is going to happen, and it isn’t a waste of time making any changes to the organization.

 WEEK 5 peer response dics 2

Capital Equipment Budget

Forum 1: Investments in protracted, fixed equipment, like a building or machines, are referred to as resources. A budget is a schedule that outlines expected revenue and expenditures associated with payment over a specific period, usually the length of a project. Since capital expenditure programs are huge economic decisions requiring significant sums of cash, capital budgeting is critical to a company in the long sustainability (Burgos, 2020). Making bad capital expenditure decisions can be disastrous to a company's bottom line.

Capital budgeting has benefits and drawbacks because it focuses on capital investments composed of massive inflows and outflows of cash to fund construction projects. Capital budgeting has the advantage of assisting a business in understanding the different risks associated with an investment tool and how certain risks impact the business's returns (Lima, 2017). It also aids the organization in determining which investment strategy will produce the maximum benefit, create an informed decision that considers all available choices, and make the correct investment decisions in a competitive environment. Capital budgeting strategies and techniques aim to maximize shareholder equity and give companies a competitive advantage in the industry and determine if an investment will raise the strong earnings or not (Lima, 2017). Financial planning also offers sufficient control over work expenditures and helps companies to manage over-investing and under-investing.

Financial planning has several benefits as well as drawbacks. Because capital budgeting choices are made for the long term but are primarily permanent, they are a drawback. Furthermore, in some cases, the strategies used are focused on estimates and assumptions because the future will always be unpredictable. It will always be introspective because the potential risk and the downplaying factor relate to the supervisors' interpretation (Burgos 2020). Finally, a poor capital expenditure decision will jeopardize the company's ultimate viability, so it must be made carefully by experts who are familiar with the project.

Despite the drawbacks, the benefits outweigh the disadvantages, and capital budgeting remains a required exercise for businesses until embarking on any long-term project.

 

 

References

Burgos, J. A. M., Kittler, M., & Walsh, M. (2020). Bounded rationality, capital budgeting decisions and small business. Qualitative Research in Accounting & Management.

Lima, A. C., da Silveira, J. A. G., Matos, F. R. N., & Xavier, A. M. (2017). A qualitative analysis of capital budgeting in cotton ginning plants. Qualitative Research in Accounting & Management.

FORUM 1: Dropkin, M., Halpin, J., & LaTouche, B (2007) explains capital budgeting is when an organization needs to spend a large sum of money on something that is anticipated to have a life span of more than a year. Nonprofit organizations are often unsuccessful due to financial issues as they do not have capital budgeting measures set into place. Jermias and Hu (2020) explains that organization managers must often use their skills to create proposals for funding as there is often limited resources available. When organizations receive funding, managers must regularly evaluate in order to determine if the investment is profitable. Capital budgeting requires management to use strategic planning and goals, viability, return on investment, and financing. Some various forms of financing include mortgages and loans, lines of credit, leases, and bond financing.  

Mortgages and loans must be researched in order to determine local laws and stipulations set by the lenders, however, obtaining a consultant is an easy process. Lines of credit give the organization the opportunity to continue requesting funds until they reach their line of credit. Unfortunately, the financial institution, can seize assets and collateral, which is why organizations should only request the amount of funds that are needed. Operating leases do not allow organizations to own the property that is being leased, which means they may need to follow certain rules and be responsible if there are damages to the property. These items do not add to the long-term debt, however, can initially be costly. Financing bonds can be very costly and is an extensive process. It is an option to assist with obtaining financial assistance, in which there are generally specific guidelines set in place for this type of financing to be used.       

References          

Dropkin, M., Halpin, J., & LaTouche, B. (2007).  The budget-building book for nonprofits  (2nd ed.). Jossey-Bass. 

Jermias, J. & Hu, B. (2020) Overconfidence and Resistance to Abandoning Unprofitable Capital Budgeting Projects: The Effects of Autonomy, Internal Audit, and Accountability. Retrieved from https://eds-a-ebscohost-com.proxy-library.ashford.edu/eds/pdfviewer/pdfviewer?vid=1&sid=59546adc-e2dc-446a-a704-9290dc1e089e%40sessionmgr4007