November 2008
Beginner
448 pages
11h 33m
English
Content preview from Budgeting Basics and Beyond
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21.6. Project (Program) Budgets
A program may be by division, department, or segment within the department. A program budget is the estimated cost of conducting an activity or function. Program activities include products or services, research and development, capital assets and facilities, maintenance, marketing, training, engineering, and government contracts. A program budget provides functions for a specific activity such as quality control and marketing research.
After a goal is identified, the program and steps to achieve that goal are specified. There is an evaluation of alternatives to ascertain the most productive and least costly manner to achieve program objectives. Resources must be allocated to programs and projects.
A project should be segregated into major activities or tasks, which should then be subdivided into specific subactivities. Program budgeting examines the tasks needed to complete a program, the manpower required, and the time period for each activity.
Program budgeting includes planning, programming, and budgeting. It accumulates data and reviews the detailed plans. It contains a mix of resources, including staff, equipment, raw materials, and capital to achieve the desired objective within a reasonable time period. Alternatives are appraised. There is a downward progression of the decision-making process. There is an emphasis on output goals of products and services rather than input goals. The budgeting is future-oriented, examining the effect of current ...
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