Page 83 - Encyclopedia of Business and Finance

eobf_B 7/5/06 2:55 PM Page 60

Bureau of Labor Statistics

These budgeted costs, therefore, are not adjusted and left national statistical agency that collects, processes, ana-
intact even though the volume of sales and output may be lyzes, and disseminates essential statistical data to the citi-
different from the originally budgeted levels. zens of the United States, the U.S. Congress, other federal
Ultimately, a good budget is one that not only uses agencies, state and local governments, businesses, and
good budgeting techniques but is also based on a sound labor. The president appoints the head of the BLS, the
knowledge of the business as well as the external factors commissioner, with approval by the Senate for a specific
that affect it. The budget serves as a planning tool for the term that does not coincide with that of his administra-
organization as a whole as well as its subunits. It provides tion.
a frame of reference against which actual performance can The BLS is distinct from the policy-making and
be compared. It provides a means to determine and inves- enforcement activities of the Department of Labor. The
tigate variances. It also assists the company in planning BLS is impartial, with a strong commitment to integrity
again based on the feedback received considering the and objectivity; its data have credibility because of the
changing conditions. An attainable, fair, and participatory standards maintained throughout the agency. The major
budget is also a good tool for communication, employee areas of BLS activity are:
involvement, and motivation.
• Employment and unemployment
SEE ALSO Financial Forecasts and Projections
• Prices and living conditions
• Compensation and working conditions
BIBLIOGRAPHY
Blocher, Edward J. et al. (2005). Cost Management: A Strategic • Productivity and technology
Emphasis (3rd ed.). Boston, MA: McGraw-Hill/Irwin.
• Employment projections
Horngren, Charles T., Foster, Datar, and Foster, George (2005).
Cost Accounting: A Managerial Emphasis (12th ed.). Upper • Safety and health statistics
Saddle River, NJ: Prentice Hall.
Raiborn, Cecily A., Barfield, Jesse T., and Kinney, Michael R. Employment and unemployment. In addition to
(1999). Managerial Accounting, (3rd ed.) Cincinnati: South- monthly figures on employment and unemployment, the
Western College Pub. BLS does a comprehensive breakdown of the age, sex, and
Schick, Allen, ed. (1980). Perspectives on Budgeting. Washington, racial and ethnic composition of the work force as well as
DC: American Society for Public Administration. of industries and occupations in which the workers are
Willson, James D. (1995). Budgeting and Profit Planning Man- employed. Other characteristics are also tracked, includ-
ual. Boston, MA: Warren, Gorham, Lamont. ing patterns of regional employment and the extent of
Young, S. Mark (1997). Readings in Management Accounting participation in work by teenagers, blacks, Hispanics,
(2nd ed.). Upper Saddle River, NJ: Prentice Hall. women, and older Americans.
Price and living conditions. Each month the Con-
Roger K. Doost sumer Price Index (CPI) and the Producers Price Index
(PPI) are prepared. The BLS also reports how households
spend their incomes.
Compensation and working conditions. Comprehen-
BUREAU OF LABOR sive studies of employee compensation—wages and bene-
STATISTICS fits—are undertaken that relate to occupations, industries,
and areas of the country. An initiative begun in 2000 pro-
“Is employment below or above the level of last month?” duces national employment cost indexes, employment
“What has happened to prices during the past month?”
cost levels, and employee benefit incidence.
Such questions—and thousands of others about a wide
range of labor-related topics—are answered by personnel Productivity and technology. This office produces pro-
of the Bureau of Labor Statistics (BLS). When the BLS ductivity measures for industries and for major sectors of
was established by Congress on June 27, 1884, its mission the U.S. economy. Additionally, it provides comparisons
was stated in these words: “The general design and duties for key BLS labor statistics series as well as training and
of the Bureau of Labor shall be to acquire and diffuse technical assistance in labor statistics to people from other
among the people of the United States useful information countries.
on subjects connected with labor, in the more general and Employment projections. There is much interest in the
comprehensive sense of that word, and especially upon its projections provided by this unit of the BLS. Information
relation to capital, the hours of labor, social, intellectual, about future employment growth—and the nature of that
and moral prosperity.” The BLS is an independent growth—is of critical importance to public officials, busi-

60 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION