Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 16,500 students are enrolled on campus; however, the admissions office is forecasting a 8 percent growth in the student body despite a tuition hike to $85 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials: • WSU is planning to award 200 tuition-free scholarships. The average class has 20 students, and the typical student takes 15 credit hours each semester. Each class is three credit hours. • WSU's faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty member teaches five classes during the academic year. Required: 1. Prepare a tuition revenue budget for the upcoming academic year. 2. Determine the number of faculty members needed to cover classes. 3. Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the growing student body. 4. You have been requested by the university's administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: "The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver-without them we don't operate." Are faculty members a key driver in preparing budgets?
Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 16,500 students are enrolled on campus; however, the admissions office is forecasting a 8 percent growth in the student body despite a tuition hike to $85 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials: • WSU is planning to award 200 tuition-free scholarships. The average class has 20 students, and the typical student takes 15 credit hours each semester. Each class is three credit hours. • WSU's faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty member teaches five classes during the academic year. Required: 1. Prepare a tuition revenue budget for the upcoming academic year. 2. Determine the number of faculty members needed to cover classes. 3. Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the growing student body. 4. You have been requested by the university's administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: "The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver-without them we don't operate." Are faculty members a key driver in preparing budgets?
Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter14: Quality And Environmental Cost Management
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 16,500 students are enrolled
on campus; however, the admissions office is forecasting a 8 percent growth in the student body despite a tuition hike to $85 per
credit hour. The following additional information has been gathered from an examination of university records and conversations with
university officials:
• WSU is planning to award 200 tuition-free scholarships.
"
⚫ The average class has 20 students, and the typical student takes 15 credit hours each semester. Each class is three credit hours.
WSU's faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty
member teaches five classes during the academic year.
Required:
1. Prepare a tuition revenue budget for the upcoming academic year.
2. Determine the number of faculty members needed to cover classes.
3. Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the
growing student body.
4. You have been requested by the university's administrative vice president (AVP) to construct budgets for other areas of operation
(e.g., the library, grounds, dormitories, and maintenance). The AVP noted: "The most important resource of the university is its
faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key
driver-without them we don't operate." Are faculty members a key driver in preparing budgets?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
Prepare a tuition revenue budget for the upcoming academic year.
Tuition revenue budget:
Total student body
Tuition-paying students
Total credit hours
0
0
0
Forecasted tuition revenue
$
0
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