Budgeting for the Cryonic Regulatory and Advisory Commission

docx

School

American Public University *

*We aren’t endorsed by this school

Course

656

Subject

Accounting

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by MagistrateHeatSnail5

BUDGETING FOR CRAC 1 Budgeting for the Cryonic Regulatory and Advisory Commission Student’s Name Institutional Affiliation Date

BUDGETING FOR CRAC 2 Response to Memorandum from the Executive Director of the CRAC To: I C Knott, CRAC Executive Director From: CRAC Budget Director Re: Preliminary Budget for CRAC The necessity for a more effective budgeting procedure than the CLONE has been brought on by the adoption of the Cryonic Burial Act. This approach will make it possible for the Cryonic Regulatory and Advisory Commission (CRAC) to get started quickly while having a precise understanding of what to anticipate, a budgeting strategy, and a revenue source. Since the regulatory body is a new entity, the administrative and overhead expenditures shall also be incorporated. Due to a lack of referential data or budgeting plans, it is crucial to implement innovative and practical tactics that will be employed in the coming years to improve and finance the operations of CRAC. Based on the CRYOut and CryERS, the Cryonic Burial Act is particularly debatable; as a result, the budgeting mechanism should be handled correctly for them considering they are shareholders when taking CRYBur into consideration. So, this becomes essential of offering a justification for the budgeting process, distinguish them, offer suggestions, a preliminary budget, and other creative approaches. Budgeting Process The CRAC budgeting process adheres to strict logical and procedural guidelines while investigating the earnings and expenditures of the Cryonic burial initiatives. The method assumes transformation in stages, employing a zero-based budgeting and activity- based methodology, from strategic, formation to execution and review. While these stages follow a chronological order, they can be combined to form more effective approach. Zero- based financial planning is deduced since it is an initiating step, therefore being regulated by

BUDGETING FOR CRAC 3 the activity-based method. When expenditures are subtracted from earnings, revenues are predicted to be $11 million from over 300 calls annually. Each component of revenue and expenditure is broken down into individual lines, taking into account how they relate to the Cryonic Burial Act and how the public would react to them. The procedure entails pre- arrangements with numerous parties and yearly estimates. The CRAC must also guarantee that expenses are less than average market rates while budgeting by taking into account wages, overhead, and administrative expenditures in addition to supplier standards. Spending must be reduced since it might have a detrimental influence on profitability in any company (Anderson, 2020), and so is CRAC. According to Cryonic Burial Act, salaries, pensions, insurance, Medicare and worker compensation are some of the significant expenses. Some other key costs include the benefit plan payments, communication fees, cleaning and maintenance costs, data gathering costs, renting and leasing costs, fleet services, transport costs, and government reimbursement. Therefore, while developing a revenue and spending plan for the CRAC, each of these considerations must always be taken into consideration. Contrarily, taking into account revenue results in greater profits relative to costs. There is a necessity for profit-making in addition to the objectives of assisting the cryonic and assisting their family members. The budgeting procedure in this scenario tries to optimize profits and, as a result, allocates suitable proportions to their valuations. Yet, most funeral service providers have just earned 4 to 5% of the value of their overall assets, which is not a poor ROI considering the business environment and the significance of their services to society. Furthermore, senior bank loans have predicted 5% returns from ETF and stock options, so it's a positive start for the business (FSANS, 2020). Financial support will be a crucial demand since groundbreaking events must be outstanding. The discriminatory fees, sanctuary penalties, manufacturer's duty, assistance, settlement and reimbursement, charitable

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

BUDGETING FOR CRAC 4 foundation funds, interplanetary agencies, enforcement activities, care and services, other services, and donations constitute some of the activities' most noticeable revenue streams. These are only a few of the financing options that may be combined to achieve the desired higher profitability. Differentiating the Zero-based and Activity-based Budgeting For its start-up, the CRAC is weighing two budgetary models. The first approach is zero-budgeting, which is logical and strategic model to CRAC given the lack of referential data for budgeting. This strategy tightens the budget and increases the likelihood of success by starting with the premise that all budgets are originally zero and rebuilt it from scratch by justifying every expenditure. The second strategy is bottom-up budgeting, that further takes urgency and constraints into account, handles discretionary expenses, and handles operation expenses over time. Participative budgeting, which incorporates activity-based financial planning, is an alternative technique for the CRAC. This top-down method assesses inputs to define outputs and presupposes a basis for the costs and expenditures. It is more rigorous than zero-based budgeting since it takes into account all actions and events. This budgeting gives the budgeting process flexibility by allowing for autonomy and subsidiaries. It increases the budget while taking into account every unique aspect of CRAC activities. Recommendations to an Applicable Budgeting Methodology A specific strategy is unlikely to be suitable since a fundamentally balanced budget must be created. It is vital to suggest utilization of both the two budgetary approaches in this situation. This proposal takes into account their logical application from a strategy phase, conceptualization, implementation, and review, similar to a typical methodology (Lee et al., 2016). This is due to the fact that, given the situation, it is preferable to satisfy all

BUDGETING FOR CRAC 5 requirements by using the activity-based method to supplement the zero-based strategy for commencement. The budget will become fundamentally balanced as one component will make up for the shortcomings of the other. Revenue Source Leading a legislative and advisory board is a challenging responsibility, particularly when it comes to contentious matters like cryonics. This indicates that, for the reasons mentioned above, revenue and funding constitute the common issues. Problems that impact the majority of people or appear to bring about significant change are often met with greater acceptance. Contrary to certain bill payments, there seem to be substantial revenue streams that can be considered universal and provide a sizable capital base. Among the revenue sources is the Cryonics Institute, which embraces technology and innovation for life and firmly endorses the activities of CRAC. This provides a solid foundation for getting the operations underway and moving quickly. A number of life insurance organizations are also prepared to help this effort (Anderson, 2020). The operations also take into account a variety of chargeable levies and other royalties that will result in revenues. such as rebates, producers' taxes, and other donations. Innovative Strategy From a holistic perspective, CRAC should therefore develop an inventive plan of action to develop a budgetary framework with a high likelihood of succeeding. This takes a pragmatic approach when seeking to settle bills, save funds, and generate more revenue. The earnings or revenues should also be calculated, which was previously performed using the chronological technique described in the previous section. For more accurate results, these sums will thereafter be determined on a monthly basis rather than yearly (Wildavsky, 2016). The computation of expenditures is the next step, which takes a simplification strategy and

BUDGETING FOR CRAC 6 looks for suppliers with cheaper prices. In order to accurately calculate the yearly predicted earnings, the budgeting process must also determine the discrepancy between revenues and expenses. As the operations have not yet begun, this strategy is appropriate at the current stage and will serve as a model for the remaining operations. Conclusion The CRAC is about to begin working as per the specifications of the Cryonics Burial Act. Budgetary concerns are a vital challenge in this instance because it is a start-up and there is no quantitative or referential background for such operations. With a zero preliminary step, zero-based budgeting assures that such issues are addressed, enabling beginning of everything from scratch. Moreover, the activity-based method fills in the gaps left by the zero-based technique, guaranteeing comprehensive applicability. The initiative will get off to a strong start thanks to the thoughtful budgeting procedures.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

BUDGETING FOR CRAC 7 References Anderson. T, (2020). Funeral Home Budgeting…the Expense side. The Funeral Director Daily. https://funeraldirectordaily.com/funeral-home-budgeting-the-expense-side/ Aziz, H., & Shah, N. (2021). Participatory budgeting: Models and approaches. In Pathways Between Social Science and Computational Social Science (pp. 215-236). Springer, Cham. https://arxiv.org/pdf/2003.00606.pdf Financial Balance Sheet. Funeral Service Association of Nova Scotia, (2020). http://www.fsans.com/Financial_Balance_Sheet_1433697.html Headline News, (nd). New Legislation Signed! The Cryonic Burial Act (CBA) authorizes the formation of the Cryonic Regulatory and Advisory Commission (CRAC). file:///C:/Users/Hp/Downloads/newspaper_article.pdf Lee, R. D., Johnson, R. W., & Joyce, P. G. (2020). Public budgeting systems. Jones & Bartlett Learning. https://www.watkinssitedevelopment.com/sites/default/files/webform/empolyment_ap plic ation/_sid_/pdf-public-budgeting-systems-robert-d-lee-jr-ronald-w-johnson- philip-gjoyce-pdf-download-free-book-6627fe3.pdf Wildavsky, A. B. (2016). Budgeting: a comparative theory of the budgeting process. Transaction Publishers