Admin Book Tables

Master Budget Schedules

Sales Budget

Displays projected sales in units for each quarter. Revenue is calculated by multiplying the estimated unit sales by the sales price per unit. This budget helps organizations understand expected income and adjust their financial strategies accordingly.

Purchases Budget

Shows services or goods needed from outside suppliers to create internal services or goods. This budget ensures that the organization has the necessary resources to meet production and service delivery needs.

Production Budget

Indicates the number of units of goods/services to be produced in a budget period. It factors in the sales forecast and the inventory levels, ensuring that the company can meet customer demand without overproducing.

Direct Material Budget

Details produced units and the costs of materials purchased or used in the budget period. This budget helps in planning the procurement of raw materials needed for production, ensuring cost-effectiveness and timely availability.

Direct Labor Budget

Displays the hours and costs associated with direct labor required for the budget period. It accounts for wage rates, hours worked, and the total cost for labor, ensuring that the organization effectively utilizes human resources and controls labor costs.

Manufacturing Overhead Budget

Summarizes expected overhead costs incurred in production during the budget period. It includes costs not directly tied to production, such as utilities and maintenance, allowing for comprehensive planning of indirect expenses.

Selling, General, and Administrative (SG&A) Expense Budget

Lists administrative and selling expenses incurred by the firm (e.g., marketing, salaries of non-production staff). It is crucial for understanding the total cost structure and ensuring that these expenses are controlled and aligned with strategic goals.

Cash Receipts Budget

Details expected cash collections for the budget period based on projected sales and other income. This budget helps in managing cash flow and ensuring sufficient liquidity for operations.

Cash Disbursements Budget

Lists expected cash payments for the budget period, including operational expenses and capital expenditures. It assists in cash flow planning and ensures that the organization can meet its financial obligations.

Cash Budget

Provides a comprehensive overview of expected cash receipts and disbursements for the period. It helps organizations maintain liquidity and plan for financing needs, serving as a critical tool for managing cash flow.

Budgeted Schedule of Cost of Goods Manufactured and Sold

Details costs of direct materials, labor, and manufacturing overhead, showing the cost of goods sold. This schedule is instrumental in understanding profitability and pricing strategy.

Budgeted Income Statement

Projects revenues and expenses for the budget period based on planned operations. It reflects expected profitability and informs stakeholders about the financial health of the organization.

Budgeted Statement of Cash Flows

Reports the anticipated sources and uses of cash for operating, investing, and financing activities. This statement is vital for understanding cash flow dynamics and long-term financial sustainability.

Budgeted Balance Sheet

Projects end-of-period balances for assets, liabilities, and owner's equity based on planned operations. It provides a snapshot of the financial position at the end of the budget period, informing stakeholders about resource allocation.

Types of Planning

Strategic Planning

Purpose: To ensure the organization is pursuing the right activities aligned with its mission.Characteristics: Long-term focus (5-20 years), externally focused on market conditions, and addresses the overall organizational direction, ensuring adaptability to changes.

Operational Planning

Purpose: To prepare for immediate tasks and objectives aligned with the strategic plan.Characteristics: Short-term emphasis (1-5 years), internal focus on specific operational actions required to implement the strategic plan effectively.

Business Planning

Purpose: Determining feasibility for business or program decisions.Characteristics: Short-term (1-5 years), guides decisions on starting, expanding, or terminating business ventures considering market research and financial projections.

Resource Planning

Purpose: Ensures necessary resources are identified and allocated for achieving goals.Characteristics: Mid-term (1-10 years), focuses on specific resources such as human, financial, and physical assets required for operations.

Organizational Planning

Purpose: Ensures appropriate organizational structure to meet future challenges.Characteristics: Mid-term (1-10 years), focuses on internal relationships and responsibilities, promoting efficiency and clarity in roles.

Contingency Planning

Purpose: Provides fallback options in case original strategy fails.Characteristics: Flexible in time frame (short-term to long-term), considers both external market risks and internal operational risks.

Emergency Planning

Purpose: Addresses potential emergencies in the workplace.Characteristics: Mid-term (1-10 years), outlines actions for various scenarios such as natural disasters or workplace accidents to minimize impact on operations.

Steps in the Planning Process

1. Define or orient the process toward a desired result (vision/mission).

2. Assess the current situation by analyzing strengths, weaknesses, opportunities, and threats.

3. Establish clear goals that are specific, measurable, achievable, relevant, and time-bound (SMART).

4. Identify strategies to achieve goals, considering available resources and potential barriers.

5. Establish objectives supporting progress toward goals, defining tactical actions for implementation.

6. Define responsibilities and timelines for each objective to ensure accountability and scheduling.

7. Write and communicate the plan to all stakeholders to ensure alignment and transparency.

8. Monitor progress toward meeting goals/objectives, implementing adjustments as needed based on evaluation and feedback.

Organizational Structure Elements

• External Environment: Influences organizational decisions and strategies, including competitors, economic conditions, and regulatory factors.

• Climate: The work atmosphere and culture experienced by employees, affecting morale and productivity.

• Structure: The arrangement of roles, responsibilities, and authority within the organization, ensuring effective coordination of efforts.

• Goals: The organization’s objectives that drive activities and resource allocation, guiding strategic and operational decisions.

• Values: The principles that shape the organization's culture and behavior, influencing decision-making and ethical considerations.

Competing Values Framework

Human Relations Model

Focus: Cohesion and morale. Via: Training and development of human resources, fostering a supportive work environment that enhances teamwork and employee satisfaction.

Internal Process Model

Focus: Stability and control. Emphasis: Information management and communication, ensuring operational efficiency and compliance with organizational standards.

Open Systems Model

Focus: Growth and resource acquisition. Emphasis: Adaptability and readiness to respond to external changes and opportunities, encouraging innovation and strategic growth.

Rational Goal Model

Focus: Productivity and efficiency. Via: Planning and goal setting, aligning resources to achieve optimal performance and measurable outcomes.

Recruitment and Placement Process

• Recruitment Application: Screens qualifications and provides background for interviews, ensuring candidate suitability.

• Screening: Utilizes criteria and tests to filter qualified applicants effectively, focusing on skills and cultural fit.

• Interviewing: Organizes and poses purposeful questions to assess candidate's competencies and potential contributions.

• Selection: Reviews notes and assessments to identify the best candidate, ensuring alignment with job requirements and organizational values.

• Hiring: Extending the offer to the selected candidate, including discussions on terms of employment and expectations.

Job Description for Community Pharmacist

• Description: Prepares medications, dispenses prescriptions, provides patient counseling and services, supervises technicians, and manages pharmacy operations to ensure compliance and quality of care.

• Qualifications: Advanced Pharmacy degree (PharmD or MS), licensure required, community pharmacy experience preferred, emphasizing competency in clinical practices.

• Performance Standards:

  • Dispensing in compliance with laws and regulations.

  • Uses clinical skills for positive patient outcomes.

  • Prioritizes work for timely task completion.

  • Fosters positive customer relations and interactions.

  • Ensures technician oversight for quality care and adherence to protocols.

  • Adheres to attendance and punctuality policies for operational efficiency.

Common Job Interview Questions

• Traditional Questions: General information about the candidate’s background and experiences.

• Situational Questions: Responses to hypothetical scenarios related to job functions to evaluate critical thinking and problem-solving abilities.

• Behavioral Questions: Past behavior as a predictor of future performance in similar circumstances, helping assess cultural fit.

• Stress Questions: Designed to assess the candidate’s stress response and ability to cope under pressure, relevant for high-stakes roles.

• Candidate Questions: Assess preparation by asking candidates what questions they have about the role or organization, reflecting their interest and engagement.

Interview Mistakes That Exclude Candidates

• Inappropriate dress or body adornments that do not match the organizational culture.

• Lack of knowledge about the position or organization reflects poor preparation.

• Tardiness or excessive rescheduling exhibits a lack of respect for others' time.

• An unengaged attitude or poor responses to predictable questions can indicate disinterest or inadequate preparation.

• Poor body language that detracts from effective communication.

• Unclear or irritating speech patterns that hinder understanding.

• Self-interest over that of the organization shows a lack of alignment with organizational goals.

• Under-confidence or over-confidence can skew perceptions of capability and fit for the role.

Types of Financial Statements

• Balance Sheet: A snapshot of the firm's investments (assets) and financing (liabilities and owner's equity), providing insight into financial stability.

• Income Statement: Connects beginning and ending balance sheets by detailing operating activities (sales, expenses) to assess profitability over a period.

• Statement of Cash Flow: Connects beginning and ending balance sheets, showing impacts of investments, financing, and operations on cash flows, crucial for liquidity analysis.

Financial Ratios

• Profitability Ratios:

  • Gross Profit Margin: (Sales - Cost of Goods Sold) / Total Sales.

  • Net Profit Margin: Net Income (after tax) / Total Sales.

  • Return on Assets: Net Income / Average Total Assets.

  • Return on Equity: Net Income / Average Owner's Equity.

• Liquidity Ratios:

  • Current Ratio: Current Assets / Current Liabilities, assessing short-term financial health.

  • Quick Ratio: Quick Assets / Current Liabilities, indicating immediate liquidity position.

• Turnover Ratios:

  • Inventory Turnover: Cost of Goods Sold / Average Inventory, reflecting inventory management effectiveness.

  • Receivables Turnover: Credit Sales / Average Accounts Receivable, assessing the efficiency in collecting receivables.