Comparing Business School Budget Models

Revenues, Expenses, and Growth Incentives

Topics: Budget Models and Cost Allocations, Budgeting, Administration and Finance, Responsibility Center Management

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Summary

The relative independence of business school budgets from institutional control contributes to the growth or decline of undergraduate and graduate enrollment as well as the direction and focus of new program development. This report studies the revenue and cost distributions of management schools at five public and private institutions, comparing strategies to incentivize enrollment growth in management schools, from financial independence to targeted tax rates.

Research Questions

  • What budget model is used by business schools at other institutions?
  • What are the components of the algorithm used to organize the business school budget structure?
  • How do contacts incentivize revenue generation in the business school?