Budgeting

The owner of a small manufacturing business finds himself in a typical predicament: sales are up 50 percent from the previous year but profits are down. How did this happen?

His friend, knowledgeable in the ways of budgets and forecasting, is able to shed some light on the situation. He shows his friend that the increase, and the extra expenditure it caused, were not forecasted in the original budget. In fact, it look as if the budget was ignored altogether. He explains where the owner went wrong and why his working goals cannot be separated from financial realities.

This program offers a straightforward explanation of what a budget is, why it works and how it is put together – helping managers appreciate the importance of setting financial targets and staying on course.