Making Budgets Work


Overview/Description
Target Audience
Expected Duration
Lesson Objectives
Course Number


Overview/Description
Often a source of frustration to inexperienced managers, the budget is the part of the finance system that every manager must know. Through the budgeting process, organisations forecast revenue and resource needs. Forecasts are transformed into operating budgets which are then monitored for adherence. This course will provide non-financial managers with the awareness of the budgeting process they need to use the process effectively. Managers will be introduced to the concepts they need to make the budgeting process work for their teams as well as their organisation.

Target Audience
Nonfinancial managers at all levels

Expected Duration (hours)
2.5

Lesson Objectives

The Purposes of Budgeting

  • recognise the value of budgeting for organisational success.
  • arrange in sequence the three steps in the budgeting cycle.
  • identify situations that illustrate the planning aspects of budgeting.
  • match examples of expenditure with the expected effect they illustrate.

    • Types of Budgets

  • recognise the benefit of each major type of budget used by organisations.
  • identify production expenses that vary directly with sales volume.
  • distinguish situations illustrating the major approaches to departmental budget development.
  • discriminate between capital expenditure budget items and other types of budget item.

    • Politics of the Budget

  • recognise the importance of successfully playing budget politics.
  • identify key things a manager should know about an organisation's budget philosophy and approach.
  • match each key departmental group with the appropriate budget issue to socialise.
  • match each budget presentation stage with the appropriate actions.

    • Tracking and Adhering to Budgets

  • recognise the importance of monitoring adherence to operating budgets.
  • identify procedures for monitoring adherence to budgets.
  • match techniques for addressing revenue variances with appropriate situations.
  • match sources of variance with appropriate control techniques.

    • Course Number:
    FIN8142