Making Budgets Work
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, organizations forecast revenues and resource needs. Forecasts are transformed into operating budgets which are then monitored for adherence. This course will provide nonfinancial 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 organization.
Target
Audience
Nonfinancial managers at all levels
Expected
Duration
2.5 hours
Lesson
Objectives:
The Purposes of Budgeting
recognize the value of budgeting for organizational success.
sequence the three steps in the budgeting cycle.
identify situations that illustrate the planning aspects of budgeting.
match examples of expenditures with the expected effect they illustrate.
Types of Budgets
recognize the benefit of each major type of budget used by organizations.
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 items.
Politics of the Budget
recognize the importance of successfully playing budget politics.
identify key things a manager should know about a company's budget philosophy and approach.
match each key departmental constituency with the appropriate budget issue to "socialize."
match each budget presentation stage with the appropriate actions.
Tracking and Adhering to Budgets
recognize 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: FIN0142