Budgeting in Apple Inc.

A budget is defined as a financial document that is used to project the future costs and profits of an organization. Budgeting can be carried out for individuals or companies to ascertain whether they can continue their operation with the anticipated expenses and profits.  This paper provides a review of the budget of the Apple Company.  The company was started in 1976 and has been among the leaders who give high-tech electronic tools. Apple Company has been growing over the years and is continuing to enlarge further. The budgeted, real and forecasted fiscal statements of Apple Company are reviewed towards analyzing the financial supervisions methods and policies being implemented in the company.

General supervision procedures in the company are competent because the financial ratios are quite healthy and the future outlook of the company is positive. Apple Company implements the incremental budgeting method that evaluates the future results through the present results to forecast and get ready budgets. The company also implements the top-down approach geared towards their set aim in all the units of the company (O’Regan, 2015).   Through the financial plan the choices that have to be ready, the nature and the stage of the threats they take are recognized.  Their budget is always prepared in line with the bazaar trends in the company’s communication division.

Apple Company has to follow the budgeting process that is in progress to alter the market trends and meet the market opposition.  Apple Company has to heed to the supervision consultants of the budgeting process to manage an effective budget that keeps all their activities under control.  The company’s future and the current position is specified for the budget study (O’Regan, 2015). The company propduct5ion method is the batch methods whereby the goods are produced are started at the beginning of the month along with are the finished products and are taken to the ended goods in the inventory after the finish. The industry always has transformations in the credit terms, volumes and sales prices.

The company can be superior if they can set their credit terms to be not more than two years. The executives of the company can assess themselves by checking how well they have performed. Substitute goods with inferior prices from the opponents have made the company’s net sales to fall. The sales of iPod reduce drastically because of the introduction of the iPhone which has multifunction as compared to the iPod.  When budgeting such considerations have to be made because an increase in sales of the iPhone led to a decrease in sales of iPod.  Apple Company bears in mind the effects of the financial disaster, and thus they focus on maximizing on the market for Mac and iPhone and their related services.  Apple Company budget helps the company to figure out that an increase in sales by 50 percent and a reduction in selling price with 10 percent does not increase profits (O’Regan, 2015).  Therefore the executives can work to reduce the selling price below 10 percent for them to increase their gains.




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