Wal-Mart Business Finanacial Report
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Please help provide a full detailed organizational and financial report on Wal-Mart Company. The report should include the following:
1-assess the budgeting process and procedures for the organization with regard to preparation techniques ,uses of evaluation, differences between business units/divisions, etc.
2-analyse how the company collects, stores and prepares management accounting information, particulary the use of management accounting system (MAS) and how information is disseminated through the organization.
3-evaluate the costing process and procedures of the organization with respect to method or approach utilized.
4-assess the capital decision making process within the organization with regard to what methods are utilized, how such methods are chosen, how projects are selected and managed, and what measures are employed to evaluate performance.
5-evaluate the criteria or mechanisms used by the organization for deciding how best to acquire capital and analyze the capital structure of the company.
6-refrences and resources of obtaining the information as well as the methodology used to perform analysis . The report should follow the structure approach and be prepared and and presented as a professional business report. Financial and accounting journals are recommended as references.Citation also.
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Solution Summary
The solution asseses, analyzes, evaluates cost and capital decisions for Wal-Mart business financial report.
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Wal-Mart Organizational and Financial Report
Table of Contents
Company Description 3
Description of Budgeting Process 3
Management Accounting Information System 4
Costing Process & Procedure 5
Capital Decision Making Process 6
Collect project information 7
Project evaluation 7
Project selection 7
Capital Acquisition & Capital Structure 8
Conclusion 9
Information Source & Methodology 9
Company Description
Wal-Mart Stores Inc. is a leader of grocery retail chain in the world. It is a multinational company headquartered in Bentonville, Arkansas. Wal-Mart was built on the foundation of saving people's money so they can live better. Company operates its business through 8400 stores in 15 countries around the world. Company follows the rapid growth strategy that facilitates continuous growth. The financial condition of company is good due to managerial effectiveness in the operations around the world (Wal-Mart, 2010).
Description of Budgeting Process
Budgets put manager's plan into operation. Budget reflects an organization's long term and short term plans to achieve business objectives. The budgeting process of the company starts with the development of plan with the analysis of cost and ends with communicate the financial information to the management (Needles, Powers & Crosson, 2007). A budget of the company defines resources that the company will generate or need in long term and it serves as a measure of the current and past performance of departments, divisions and individual managers.
The budgeting system of Wal-Mart is different from other organizations' budgeting systems. The budgeting system of Wal-Mart is focused on providing better quality and services to the customers. The company evaluates its renovation plan using capital budgeting techniques. Wal-Mart also focused on the management the variable cost like budget payrolls, travelling costs etc. In the planning, company motivates its employee to achieve the targets and provides better facilities to customers (Needles, Powers & Crosson, 2007).
Wal-Mart sets the goals and objectives and clearly defines the mission and vision of the company in its budgeting process. The company also plans for the stock requirements in order to achieve the forecasted level of sales. The budgets in the company are also used to evaluate the performance. If managers look the variance in the figures then they take the appropriate actions to solve them. Managers communicate the budgets throughout in the company that helps to communicate the goals and targets of each employee (Underhill, McAnally & Koriath, 2007). To provide continuous feedback about an organization's operating, investing and financial activities, managers prepare and distribute reports based on budget information throughout the year. It is an effective tool and helpful to motivate employees for performing well in the company throughout the year.
Management Accounting Information System
Management accounting system can be defined as the system that is used to manage the accounting information effectively and appropriately. Wal-Mart uses the strategic management accounting system for the management of accounting information within the organization. The use of strategic management accounting system helps to enhance the effectiveness of decision making within the business. It is because; this system provides the accounting information that is necessary for the decision making in an organized and proper way. The management accounting information system in Wal-Mart is used for everything from entering in new market to selection of vendors and products to develop the new process to decide pricing and promotion strategies and to distribution (Needles, Powers & Crosson, 2007).
The management accounting information helps to collect the information related to the external factors that may affect the managerial decisions within ...
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