Dynamic Budgeting Feature Idea

Over the years I have tried to use the onCourse budgeting features to our best advantage. As we are aware, organisationally we have fixed and variable costs. Variable costs are usually easy to deal with. They consist of factors such as tutor fees, room rental etc. It is usual that if a class does not proceed, these cost are not incurred.

What is harder to deal with are the fixed costs. These are the costs that need to factored in as part of any class budget. They include permanent staff salaries, rent, utilities, insurance etc.

The issue is that we run a dynamic programme with the volume of offering changing.

Example: The College runs 100 classes and our overheads are $100K. The simple figure to put in a class budget is $1000 in fixed costs. In reality what happens is that the number of classes change according to demand whereas the fixed costs remain fairly stable. Therefore if we run 110 classes and simply duplicate the class and its budget, we are over-compensating for our fixed costs. Likewise, if we run only 90 of the planned classes, we under-compensate.

Idea: Establish an input for the total of the overheads. Establish a script that looks at all of the enabled classes and all of the finished classes on a regular basis, perhaps daily. The script divides the total of those classes into the overheads figure. The script then updates the individual class overheads. This would greatly assist with pricing accuracy.

The script could be enabled or disabled according to need.

Any thoughts appreciated.