Page 137 - Budgeting for Managers

Budgeting for Managers
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$20,000.
– $15,000 for the basic computer
– $5,000 for special equipment (needed for certain jobs)
and an increase to the spare parts inventory
Save money through inventory control.
•A basic system for this year
•Will cost under $100,000
• Should save $35,000 in inventory losses and lost orders
per year
• Can be expanded to connect to the corporate network in
the future
Use efficient cost management.
• Standard, modern equipment and standard training are
saving us hundreds of thousands of dollars per year
through employee effectiveness and efficiency. It keeps us
ahead of the competition while costing us only $40,000
this year.
• The program to ensure everyone who needs a computer
has a computer and is trained is reducing turnover, saving
lots of money in HR for only $20,000 this year.
• The new inventory system will pay for itself in under three
years.
•We avoided $40,000 in extra expense by keeping the
inventory system simple and not linking it into the corpo-
rate network.
•We saved an additional $2,700 by planning ahead and
consolidating computer purchases.

This is the shortened version of this outline that can be con-
verted into a colorful slideshow:

Keep the computers running!
•Replacing computers: $30,000
–reduce support cost
– increase productivity
• Computer parts inventory: $6,000