November 2008
Beginner
448 pages
11h 33m
English
Content preview from Budgeting Basics and Beyond
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11.3. Funding Level
The manager must decide how much to fund research and which specific activities should be funded. The amount funded depends on how much support is needed to succeed, project priorities, number of programs desired, growth rate, size and capability of research staff, competition, trade and industry statistics, state of the economy, and political concerns.
The manager should set a minimum -maximum range for R&D funding and decide what circumstances would change this range.
Revised R&D calculation should be made when researchers request additional funding or time. The manager should determine if the request has merit or is a waste of additional resources. Then the manager must decide whether to support the project modification or drop the product. The manager should set a high priority to fund developmental projects, and these projects should be ranked after taking into account capital investment, expected costs, and anticipated earnings, including forecasted royalty receipts.
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