Nursery Management
Understanding and Managing Finance
Bulletin 11
Study Notes
In the eleventh study session the following topics are covered
A : The Budget-Setting Process
B : Approaches to Budgeting
C : Monitoring and Controlling performance
D: Behavioural Issues
E: Non-Financial measures
Advice for Students
This session focuses mainly on three things: the creation, monitoring and control of budgets.
Section A focuses on how we might, in a perfect world, constitute a budget setting process.
The realities of budgeting in many companies may be very different to this. Section B
describes some of the different principles of budgeting: Incremental, ZBB, ABC etc. Section
C looks at how budgets are used for control, looking specifically at variances, and how these
might lead to action. Sections D and E consider further issues of a behavioural nature.
Reading
Part 11A: The Budget-Setting Process
Reading Mc Laney and Atrill pages 365-369
This section describes how the actual budgeting process works, what is done and in what
order.
Part 11B: Approaches to Budgeting
Mc Laney and Atrill pages 369-371, 376-377
This section documents a number of different approaches to budgeting, including the
incorporation of non-financial measures as targets within budgets.
Jane Simmons 01/09/04
Part 11C:
Mc Laney and Atrill pages 363-365, 380-382
This section describes the different uses that budgets might be put to, and who might use
budgets.
Part 11D: Monitoring Performance
Mc Laney and Atrill pages 392-395
This section describes how budgets can be used to monitor performance.
Part 11E: Behavioural Issues
Mc Laney and Atrill pages 377-380, 411-413
These two readings are on a related theme: How do managers respond when asked to
work within budgetary or other constraints?
Follow-up Activities
You are asked to:

Read Chapters 12 and13.
Jane Simmons 01/09/04