Page 138 - Budgeting for Managers

Preparing for Presentation
•Total annual maintenance: $42,125
– Fourth year
–Cost per employee $234
–Down from $260 last year
Everyone who needs a computer gets a computer! 121
• HR coordinates with departments
– testing and training done by HR
• IT sets up computers before employee’s first day
• 10 computers, $20,000
– $15,000 for the basic computer
– $5,000 for special equipment and spare parts
Save money through inventory control.
• Basic system under $100,000
• Saves $35,000 per year
–reduce inventory losses
–prevents lost orders
Use efficient cost management.
•People can do their jobs, not waste time with computer
troubles. Saves hundreds of thousands, costs $40,000
this year.
•Everyone who needs a computer gets a computer, reduc-
ing HR costs by reducing turnover. Costs only $20,000.
•The new inventory system will pay for itself in under three
years.
•Saved $40,000 by getting a simple inventory system that
does the job.
• Saved $2,700 through consolidated purchasing.

Manager’s Checklist for Chapter 7
❏ What are the parts of your budget?
❏ How would you plan each part, as production work or as a
project?
❏ Can you build a consolidated budget for your department?