1. What do you understand by a project budget? Please outline the steps needed to prepare a project budget and indicate the types of costs associated with budgets.
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.
1. What do you understand by a project budget? Please outline the steps needed to prepare a project budget and indicate the types of costs associated with budgets.
2. Prepare a multi-year budget for a project for a period of 3 years (2020-2022) in an Excel worksheet incorporating the following information. Please upload your excel document.
3. Please prepare a consolidated budget pivot table in Excel by budget class and year. Please upload your excel document.
Budget Class – Staff Costs
• Salary of the Project Manager @ USD 5,000 per month.
• Salary of the Admin Finance Officer @ USD 3,500 per month.
• Salary of Admin. & Finance Assistant @USD 1,000 per month
• Salary of Driver @USD 500 per month
Budget Class – Equipment & Furniture
Cost of the office equipment and furniture required for the project is USD 30,000 for three years to be procured during the 1st year of the project.
Budget Class – Operating Costs (training)
Two trainers are required for each training. Each training lasts for 5 days. The total number of participants for each training is 30.
• DSA/ ticket cost of each participant @ USD1, 000 per training.
• Total number of 5-day trainings planned for each year is 4.
• Fee for Trainer @ USD 2,000 per training.
• Cost of logistic arrangements for each training @ USD 10,000.
In addition to the main direct costs listed above, please include other operating costs using the following annual rates for calculation:
- Communications - 1% of the main direct costs
- Office supplies and other miscellaneous expenses - 2% of the main direct costs
Budget Class - Project Support Costs (PSC)
UN PSC rate is 7 %
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