07 May WHAT IS TOTAL REVENUE (EXCLUDING GRANTS) PER STUDENT?
The first requirement of this case relates to the planning function of a budget. Comment on the following relating to the charter school budget:-
(1) Is this a static or flexible budget?
(2) What is total revenue (excluding grants) per student?
(3) What are total expenses per student?
(4) Do all expenses seem necessary?
(5) Is this school viable? How many students does the school need to break even (show your calculations with analysis and state your assumptions for break-even)?
(Note: For break even analysis – Ignore revenue received as Grants and Startup Costs (Schedule A).
(6) What are the general benefits of preparing this budget?
(7) Discuss how this budget is likely to be used for the control function.
Part II
The second requirement of this case relates to the control function of a budget. Use the background material and Internet to answer the following questions.
(1) Variance analysis is a traditional tool used for planning and control. Comment on advantages and disadvantages of using this approach for performance evaluations.
(2) Do you have any suggestions for complementary or alternative performance measures?
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