How do you do a capital budgeting analysis on cost savings?
361456
the idea is to know the present value of the cost savings, it is doen for a replacement decision so as to know what is the net inflow/outflow from the project, \n\nthis is all i could answer from ur question,
315028
NPV lets you know whether a project is feasible or not at a certain % of interest rate.\n\nSay your funds cost you x%, you can assess whether your project gives you enough returns to meet your financial costs based on the returns (cash inflows) you get at various points of time in the future.\n\nIf your NPV is zero, \n==> Your returns = Your financial costs.\n\nIf your NPV is positive, \n==> Your returns > Your financial costs.\n\nIf your NPV is negative, \n==> Your returns < Your financial costs.\n\nIRR gives you the exact rate of return that you earned based on the returns you get (cash inflows) at various points of time in the future.\n\n\nFor Finding NPV\n================\nCash inflows for all the periods are discounted with the appropriate discounting factors to obtain the discounted cash flows.. whose sum is the total discounted cash inflow..\n\nThis set off against the initial cash outlay would give you the NPV\n\nYou can find the factors from tables or calculate them on your own..\n\nThe logic behind a factor\nSay if the rate is 10% \n\nFirst Year\n------------\nA sum of $100 at the beginning of the first year i.e. zero period would become 110 at the end of the first year\n\nAn amount of 110 at the end is equal to 100 now \nAn amount of 1 at the end is equal to ??\n(1 * 100)/110 i.e. 100/110 = 0.9090\n\nSecond year\n-----------\nA sum of $100 at the beginning of the first year i.e. zero period would become 121 at the end of the second year\n\nAn amount of 121 at the end is equal to 100 now \nAn amount of 1 at the end is equal to ??\n(1 * 100)/121 i.e. 100/121 = 0.8264\n\n\n\nFive and half years\n-----------------\nA sum of $100 at the beginning of the first year i.e. zero period would become 169 at the end of the five and half  years\n\nAn amount of 169 at the end is equal to 100 now \nAn amount of 1 at the end is equal to ??\n(1 * 100)/121 i.e. 100/169 = 0.5917\n\nIf you have factor tables ready hand you can use that for the whole years and calculate the factor for 5 and half years.\n\n\nhttp://www.futureaccountant.com/
655389
Are you a management accountant? If so you would have some idea about what you are going to do.\n\nThe importance of cost cutting solely lies upon the results of gaining higher profits and indeed the certainty of existence for future business. The higher the profit gains the more the company may be recognized. You could even go to the level of issuing shares if needed (Public IPO). \n\n\nUnderstanding the Situation (Your Ground Work):-\na) Materials\nSources of information:\nTender offers or purchase receipts of past\nProfit & Loss account and balance sheet or Bin Cards if not stores ledger control account.\n\nImportance:\nSignificant! You could attain a very comprehensive knowledge in the cost of materials. If you were specific about the materials you could investigate the importance of it, Direct or Indirect, and then determine whether they are needed or not. Find better Suppliers.\n\nb) Overheads - \nImportance:\nExpenditure apportioned and reapportioned to the service cost centers are much attributable costs, towards the increase in expenditure, although they are reciprocal. (Maintenance, cafeteria and many more) Understand the situation. They would add up quite a big amount of costs.(Electricity, Telephone, Internet, Cable TV, satellite Radio)\n\nc) Labour:\nImportance:\nGreat amount of wages and/or salary could be saved. Do an evaluation on employee performance and find-out whether you could get two jobs in one individual by paying attractive to employee, yet, less costly overtime premiums. Cut down certain unrelated or in-appropriate positions. \n\nEven you could try adding certain skilled workers instead of unskilled or semi-skilled workers to earn profits in time and money.\n\n\n\nStrategies:-\na) Learn with due care and interest about this field. Dedicate sufficient time to understand the market of this particular products marketability.(I know its non-of your business, its the marketing division!)Think if you could make certain changes in the manufacturing part.\nb) Incentives for more productive workers! (Bonuses!) or enhanced overtime premiums.\nc) Reduction of certain workers in exchange of skilled workers.\nd) Reduction in "Indirect costs" yet retaining the perfect maintenance in order. You can cut-down unwanted reciprocal service cost canters.\ne) Be a really kind and efficient Boss! to your staff. Show them your kindest concern over office-related or their personal events (sickness, new baby boy/girl!, vacation & much more). This would be advantages in the long-run.\n\n\nProcedures:\nYou would require reporting comprehensively to the board of directors, if existed, or to the director of the company sighting the CEO as a respondent. \n\nReporting:\nWhen righting the report make sure not to include, accountant's terminology. Always keep things simple. The directors are certain persons with no accounting knowledge should be your assumption. \n\nWhile keeping things clear with simple language, it should be short and interesting as well. The directors/CEO wouldn't dare to spend a lot of time reading the report. So make it a point to keep things short & Sweet! \n\nAlways use relevant headings at required points. \n\nGive statistical data of the records you've observed, and decided on. Reference is very important. Use Charts, only when needed.\n\nOnce you've proven certain facts, give required suggestions. Like making certain purchases at an EOQ level.\n\nNumbers are important. You should be able to predict/budget the future cost on certain logic. Make your own logic that’s sensible. Its obvious logic should be sensible.  \n\nThat’s it for now!\nI think I’ve given you some basics in management accounting!\n\nGood Luck!
928940
Look at the balance sheet
40878
You need to determine whether your expenses are too high or your gross income is too low. This requires an analysis of your P&L for the past few years. Cutting expenses many times is the wrong action. You may need to increase advertising and marketing activities and expenses and check your legal and business structure. You business' growth may be hampered by the lack of capital. I suggest you speak with a good business and tax lawyer.\n\nI hope this helps!\n\nRonald J. Cappuccio, J.D., LL.M.(Tax)\nCounsellor at Law
955222
Way too complicated for an answer here, me thinks.  Spend the cash for a good CPA or Comptroller.
394204
You will show that on a capital loss carryover worksheet. Line 6 of your Sch. D will lead you to a worksheet on page D-6 of the instructions for the schedule. The worksheet will help you to keep track of your carryforward of your capital losses. You don't have an accountant to do your taxes????
940383
Ha! Trial and error.\n\nUse a spreadsheet.
238744
You need to put yourself on a budget! Budgets are the only way to save money. Look at your income, look at your expeditures. There's not much of a difference, is there? It's really easy to start a budget. Write down the things you need to buy, as opposed to things you want to buy. Arrange these things into categories, i.e., groceries, gas, insurance, cell phone bills, utilities, rent, etc... Pick a reasonable amount of money that you will spend each month on each categorie. For example: groceries $150, gas $60, cell phone bill $50. Don't leave anything out, and don't spend more than what you said you will spend. If you go over in a category, you must take from another. If you decide that you will spend $45 dollars on your cell phone bill, but the bill is $50, you'll have to lower your budget for another category by $5, just for that month.\n\nLook at what you have left. Let's say you made $5,000 one month and budgeted your necessary items at $4,500. You have $500 dollars left that you can blow on anything, but you haven't saved any money yet. You need to decide how much you're going to save. I would suggest all of it. But you can budget in things like going to the movies and buying CDs. Save what you have left. WRITE EVERYTHING DOWN! get a ledger book and write everything down. after a while you're savings will be phenominal!
310914
Well you can take the squaree footage of the apartments and divide it into the over all squar footage to get a percentage. That percentage would dictate the amount of expenses they should absorb. That is if your expenses are generalized.
1166814
The simplified answer is : Return/Capital\n\nGoing overboard:\nThere are two formula's that can be used:\nTraditional Formula:\nROI = Net Profit After Taxes ÷ Total Assets\n\nDuPont Formula:\nROI = (Net Profit Margin) x (Total Asset Turnover)\nROI = (Net Profit After Taxes ÷ Sales) x (Sales ÷ Total Assets)\n\nIn addition you can calculate an ROI for just about anything and a lot of suppliers have tools/calculators on their website. Would suggest a yahoo search for a calulator
348604
try this site\n\nhttp://www.futureaccountant.com/process-costing/
602391
The project cost is fixed capital plus an working capital cycle.The working capital cycle may be the operating cost required for an year/period.In project financing, the scale of finance is determined as the capitalised cost which include fixed assets plus the working capital required for an year or a stipulated period or whichever is appropriate
351325
You need to make a companies capital budget? well you have to start with a sales projection and work backwards. After you estimate how much you will produce, you will need to figure out how much it will cost to produce it and of course, you want to have a profit left over. Any managerial accounting text book will have a chapter outlining this in detail, head to the library!
92190
http://www.personalbudgeting.com/sample/sample.html\n\nhttp://www.personal-budget-planning-saving-money.com/
437167
DID YOU CHECK FOR THE FIRM'S 10 k REPORT FROM THE SECURITY \nAND EXCHANGE COMMISSION'S EDGAR ONLINE SERVICE? ONCE YOU GET THAT AND OR THE ANNUAL REPORT YOU CAN CALCULATE \nTHE INFORMATION YOURSELF SEVERAL WAYS IF YOU HAVE TO.\nGET A COPY OF THE WALL STREET JOURNAL AND SEE IF THEY HAVE \nISSUED CORPORATE BONDS.  IF SO, BASED ON THEIR COUPON RATES AND THE CURRENT MARKET PRICE YOU CAN SIMPLY CALCULATE THE AFTER TAX YIELD TO MATURITY (ytm%).  YOU MAY BE ABLE \nTO BACK OUT THE COST OF DEBT FOR THE CORPORATION BY FIRST CALCULATING THEIR wEIGHTED AVERAGE COST OF CAPITAL(wacc%).\nFIND THE STOCK'S COST OF CAPITAL USING AN ASSET PRICING MODEL LIKE THE CAPM (CAPITAL ASSET PRICING MODEL) OR \nSIMILAR MODEL AND SUBTRACT IT FROM THE WACC%. MAKE SURE YOU\nHAVE ACCOUNTED FOR ANY PREFERRED STOCK COST IF IT HAS BEEN ISSUED.
80365
First step is to review what you are spending money on.  Prepare a budget and stick to it.  Most people that have money, made it by saving it.  They did not start a business or own one.\n\nSecond step would be to improve your education/training.  Many companies will pay for the training.\n\nThird step would be consider a government position.  The town/city/county/state government positions will include a pension/state retirement.  This will mean that you are saving for your retirement even though you are not actively saving because it is mandatory for government employees.