Budgeting

Constructing and controlling budgets

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  • Overview

    The aim

    To prioritise, build up and control a budget at work.


    About the programme

    The owner of a small manufacturing business finds himself in a typical predicament: sales are up 50 per cent on the previous year but profits are down.

    His more knowledgeable friend is able to explain that the increase, and the extra expenditure it incurred, were not previewed in the original budget - indeed, the budget appears to have been ignored altogether. He explains where the owner went wrong and why his working goals cannot be separated from financial realities.

    This humorous programme uses clear examples aided by graphics to teach all managers, including those with no prior knowledge, to appreciate the importance of budgets to business activity, and guides them on how to construct and control a budget.


    The key outcomes

    -Learn what a budget is, why it works and how it is put together
    -Take more control of your budget


    Includes electronic training resources:

    Video (30 mins)
    Discussion guide


    Information:

    A Video Arts production featuring John Cleese and John Bird. Release date: 1996

  • Learning chapters

    1. Introducing Carruthers and Scroggs http://mx.videoarts.com/product/FIN5 L01/Introducing-Carruthers-and-Scroggs http://mx.videoarts.com/images/products/FIN5 L01.jpg
      Carruthers and Scroggs meet up. Each has a gripe about the other. Carruthers feels his business is booming. Scroggs feels that it isn't.... (read more)
    2. The basic budget mistake http://mx.videoarts.com/product/FIN5 L02/The-basic-budget-mistake http://mx.videoarts.com/images/products/FIN5 L02.jpg
      Carruthers and Scroggs meet up. Each has a gripe about the other. Scroggs points out that although sales accelerate it doesn't mean that profits do. They start to look at Carruthers budget and his projected profits.... (read more)
    3. What went wrong http://mx.videoarts.com/product/FIN5 L03/What-went-wrong http://mx.videoarts.com/images/products/FIN5 L03.jpg
      Carruthers and Scroggs step into a diagram and Scroggs demonstrates income, expenditure, profit and loss.... (read more)
    4. The need to construct a budget http://mx.videoarts.com/product/FIN5 L04/The-need-to-construct-a-budget http://mx.videoarts.com/images/products/FIN5 L04.jpg
      Scroggs explains the need for a budget and Carruthers questions why a budget is a necessity.... (read more)
    5. Constructing Budgets http://mx.videoarts.com/product/FIN5 L05/Constructing-Budgets http://mx.videoarts.com/images/products/FIN5 L05.jpg
      Scroggs demonstrates how to construct a budget: suggesting that Carruthers meets with each department to discuss their individual budgets first.... (read more)

    6. Co-ordinating budgets http://mx.videoarts.com/product/FIN5 L06/Co-ordinating-budgets http://mx.videoarts.com/images/products/FIN5 L06.jpg
      Scroggs shows Carruthers how to co-ordinate by adjusting each departments- expenditure budgets, and the overall income budget, until they all fit together into a workable plan that leaves a decent profit.... (read more)
    7. Controlling budgets http://mx.videoarts.com/product/FIN5 L07/Controlling-budgets http://mx.videoarts.com/images/products/FIN5 L07.jpg
      Scroggs demonstrates to Carruthers how to control budgets by working out costs month-by-month.... (read more)
    8. Summary http://mx.videoarts.com/product/FIN5 L08/Summary http://mx.videoarts.com/images/products/FIN5 L08.jpg
      A summary of the lessons on budgeting.... (read more)

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