Analysis of Wal-Mart Managerial Accounting Process
Analysis of Wal-Mart Managerial Accounting Process
Table of Contents
Company Description of Wal-Mart Page 3
Budgeting Process Page 3
Management Accounting System Page 4
Costing System Page 5
Capital Decision Making Process Page 6
Capital Structure Page 6
Project Conclusion Page 7
Information Sources and Methodology Page 8
References Page 8
Company Description
For the final project of managing finance Wal-Mart Stores Inc is chosen as the discussion target. Being one of the grocery retail shop leaders in the world, Wal-Mart (WM) operates business with 10,000 retail units in 27 countries with about USD444 million of sales in 2012 (Wal-Mart homepage 2012). Driven by the corporate strategies, WM growth rapidly around the world. To support the growth, managerial effectiveness in the operations is very important. Since budget is the first step which put manager’s plan into operation, let’s take a close look at WM’s budgeting process.
Budgeting Process
Budget reflects a company’s plan, both long and short term, to accomplish business objectives. The focus of the WM’s budgeting system is on providing better quality and services to the customers. WM follows needed considerations in its budgeting process and procedures. They implements flexible budget in its business that identifies overhead cost drivers and allocates capital to those over head costs properly. Through this way, WM is able to make a budget for different levels of activity. WM set goals and objectives and define their mission and vision clearly in their budgeting process. They plan for the stock requirement in order to achieve the forecasted level of sales. Budgeting process is also helpful to measure the performance of different departments in WM. It enables them to manage costs of different levels of action by weighing the actual costs against the budgeted cost (Plunkett, Attner & Allen, 2011, p. 558-560).
WM takes
Table of Contents
Company Description of Wal-Mart Page 3
Budgeting Process Page 3
Management Accounting System Page 4
Costing System Page 5
Capital Decision Making Process Page 6
Capital Structure Page 6
Project Conclusion Page 7
Information Sources and Methodology Page 8
References Page 8
Company Description
For the final project of managing finance Wal-Mart Stores Inc is chosen as the discussion target. Being one of the grocery retail shop leaders in the world, Wal-Mart (WM) operates business with 10,000 retail units in 27 countries with about USD444 million of sales in 2012 (Wal-Mart homepage 2012). Driven by the corporate strategies, WM growth rapidly around the world. To support the growth, managerial effectiveness in the operations is very important. Since budget is the first step which put manager’s plan into operation, let’s take a close look at WM’s budgeting process.
Budgeting Process
Budget reflects a company’s plan, both long and short term, to accomplish business objectives. The focus of the WM’s budgeting system is on providing better quality and services to the customers. WM follows needed considerations in its budgeting process and procedures. They implements flexible budget in its business that identifies overhead cost drivers and allocates capital to those over head costs properly. Through this way, WM is able to make a budget for different levels of activity. WM set goals and objectives and define their mission and vision clearly in their budgeting process. They plan for the stock requirement in order to achieve the forecasted level of sales. Budgeting process is also helpful to measure the performance of different departments in WM. It enables them to manage costs of different levels of action by weighing the actual costs against the budgeted cost (Plunkett, Attner & Allen, 2011, p. 558-560).
WM takes
References: Drury, C. (2006). “Cost and Management Accounting: An Introduction”. USA: Cengage Learning EMEA. Gilbertson, C. B. & Lehman, M. W. (2008). “Fundamentals of Accounting: Course 1”. USA: Cengage Learning. Kronwald, C. (2010). “Credit Rating and the Impact on Capital Structure”. Germany: GRIN Verlag. Leitner, A. (2007). “Activity Based Costing”. Germany: GRIN Verlag. Needles, B. E., Powers, M. & Crosson, S. V. (2010). “Financial and Managerial Accounting”. USA: Cengage Learning. Plunkett, W. R., Attner, R. F. & Allen, G. S. (2011). “Management”. USA: Cengage Learning. Axson, D. J. (2010). “Best Practices in Planning and Performance Management: Radically Rethinking Management for a Volatile World”. USA: John Wiley & Sons. Seidman, K. F. (2004). “Economic Development Finance”. UK: SAGE. Yahoo Finance (2012). Retrieved from: http://in.finance.yahoo.com/q?s=WMT Accessed on : Oct 25, 2012 Walmart Homepage 2012 Walmart Annual report 2010 to 2012. Retrieved from: http://stock.walmart.com/annual-reports Accessed on : Oct 25, 2012