Page 108 - Budgeting for Managers

Phase
Unit
Type of Item
Cost
Quantity
Item
Cost
Concept
Coffee hour for friends
Indirect materials
$75
of the store Planning and Budgeting a Project 91
Analysis
Meeting with ad con- 3 $150 $450 Consulting labor
sultant (per hour) 2 $150 $300 Consulting labor
Design
Ad consultant reviews 1 $150 $150 Consulting labor
artwork plan
Development
Image development 8 $150 $1,200 Consulting labor
Newsletter layout 16 $75 $1,200 Consulting labor
Check galleys 1 $150 $150 Consulting labor
Transition to Production
Software to prepare
bulk mailing 1 $129 $129 Indirect materials
Printing (per copy) 2,000 $1.50 $3,000 Direct materials
Bulk mailing (per and service
customer) 1,500 $0.50 $750 Services
Shipping $50 Services
Total $7,454
Table 5-5. A Sample Project Budget: Customer Delights!
cost of consulting and similar services, cost of direct mate-
rials, and cost of indirect materials and tools.
❏ An accurate budget comes from a detailed work plan.