Corporate Fin Mgt NDLM.PDF

Learning Unit - 3

Instructions to Faculty

A. Performance Budgeting

1. Objectives:

At the end of this learning unit, the participants will be able to

ó Understand the meaning, concept and framework of performance budgeting.

ó Design responsibility centers by linking financial inputs to outputs.

To achieve the above objectives it is necessary to impart training in the conceptual
framework of performance budgeting and the methodology to design responsibility
centers.

2. Instructions to Faculty:

2.1 Make a presentation covering the following content areas:

v Explain and define Performance Budgeting

v Explain the following points

o Historical development of Performance Budgeting.

o Line item budget

o Definition and meaning of responsibility centers

v Programme/Activity classifications

v Norms, yardsticks and standards to measure performance

v Accounting classification

v Decentralized responsibility structure

v Reporting and review of performance

v Designing responsibility centers.

2.2 Faculty may use the material in visual aids Nos. 20 and 21 in order to

make the said presentation.