What do you know about FP&A?
FP&A stands for Financial Planning and Analysis. It is a crucial function within an organization that focuses on financial forecasting, budgeting, and analysis to support strategic decision-making. FP&A professionals work closely with senior management and other departments to develop financial plans, evaluate performance, and provide insights into the financial health of the company. In FP&A,…...
Bottom Up Budgeting Vs Top down Budgeting.
Bottom-up budgeting and top-down budgeting are two different approaches to the budgeting process within an organization. Here’s a brief explanation of each: Bottom-up Budgeting: In bottom-up budgeting, the budget is created by involving various departments or teams within the organization. Each department or team prepares its own budget based on its specific needs, objectives, and…...
What do you understand by FP&A?
FP&A stands for Financial Planning and Analysis. It is a function within an organization that focuses on financial planning, budgeting, forecasting, and financial analysis. The main purpose of FP&A is to support strategic decision-making by providing accurate and timely financial information and insights to management. In FP&A, professionals work closely with various departments, such as…...
Difference between marginal costing, absorption costing and standard costing?
MARGINAL COSTING Marginal costing is generally a decision making, you have to use marginal costing when you want to decide whether you want to fulfil the next order or what my actual profit on the additional order. It is generally not used for accounting purpose but a decision making process. And it includes only variable…...
How do you forecast Costs?
Forecasting costs involves estimating future expenditures that a company will incur as part of its operations. This process is essential for budgeting, financial planning, and decision-making. Here’s a detailed approach to forecasting costs, along with examples of various types of costs: 1. Historical Data Analysis: Gather historical cost data over a defined period. Analyze trends,…...
What makes a “good” budget?
A “good” budget is one that serves as an effective financial planning and management tool, aligns with an organization’s goals, and provides a clear roadmap for allocating resources. It should help the organization achieve its objectives, manage its finances efficiently, and adapt to changing circumstances. Here are the key attributes that make a budget “good”:…...