Budget and Budget Narrative

Budget and Budget Narrative

Budget

Revenues                         $550,000	Expenses                                 $425,500
Direct costs	Indirect costs
Seminar Venue                                                  $10,000 Beverages                                            $5,000 Handout materials                               $20,000 Laptop                                                 $25,000 Projector                                              $20,000 Travel costs                                         $10,000   Total                                                   $ 90,000   Online training program Marketing                                   $10,000 Learning Management System   $36,500 Software                                     $50,000   Total                                           $96,500       Negotiating with learning institutions Beverages  $5,000     Total          $5,000	Seminar Telephone expenses      $2,000             Total                                  $2,000   Online training program Internet             $15,000 Salaries             $200,000     Total                  $215,000   Negotiating with learning institutions Travel expenses          $10,000 Telephone expenses    $2,000   Total                            $17,000

 Budget Narrative

Describe at a high level the various cost categories and expenditures.

The main categories of expenditure in the project include direct and indirect costs. According to Spielman (2018), direct costs are the costs incurred in running the main business operations, whereas indirect costs are the costs that cannot be directly linked to business operations. The direct and indirect costs in the project are broken down based on the activities in the project. For example, the estimated direct costs of organizing and conducting the seminar amount to $90,000.The amount includes $10,000 for paying the venue,$5,000 for beverages,$20,000 for handout materials,$25,000 for a laptop,$20,000 for the projector, and $10,000 for travel. The travel costs will include any expenses incurred traveling to and from the venue where the seminar will be conducted. Beverages will include water and soft drinks that will be provided for those attending the seminars. The estimated indirect costs in organizing and conducting the seminars will be telephone expenses. The expenses will include the airtime used to communicate with the seminar attendees and the team assisting in organizing the seminar.

The estimated direct costs of implementing the online training program will amount to $96,500.The costs will be broken down into $10,000 for marketing activities, $36,500 for the Learning Management System, and $50,000 for software. The estimated indirect costs of implementing the online training program will amount to $215,000.The costs will be broken down into $15,000 in internet expenses and $200,000 in salary expenses. The salaries expenses will cover the costs incurred to pay the customer service representative responding to the inquiries on the online training platform, the platform’s developer’s and designer’s salary, and the compensation for the online trainers and speakers at the seminar. The direct costs of negotiating with learning institutions will amount to $5,000 in beverage expenses. The indirect costs will amount to $17,000.The costs will include $15,000 in travel expenses and $2,000 in telephone expenses.

Detail the significant items in the budget, including how these expenses and revenues were determined and why they are important

The significant items in the budget are the costs that will be incurred to meet venue, beverages, handout materials, laptop, projector, marketing, Learning Management System, Software, Internet, and Salaries expenses. The costs are important because they directly impact the success of the project’s activities. For example, the success of the seminars will be determined by the availability of handouts that the attendees can use to get an idea of what will be discussed and the refreshments they can consume during the seminar sessions, such as water and soft drinks. The seminar venue is also vital because it will accommodate the seminar attendees. The laptop and projector are important in presenting content during the seminar sessions. Marketing is important because it will help inform the target audience about the seminars and online training programs. The Learning Management System, Software, and internet are vital in sustaining the online training program. Salaries are also important because they will help sustain the staff needed to implement the online training program and conduct seminars. The venue expense was determined based on the hourly ratings of renting a hall in Arlington and the venue’s location. Handout materials expenses were determined based on the estimated number of people attending the seminar. The expenses that will be incurred to purchase the laptop and projector were determined based on the average price of a laptop and projector in the market. The cost of the Learning Management System and software was determined based on an internet search on the average amount of learning management systems and appropriate software. The internet expenses were determined based on internet charges in Arlington and the internet speed needed to maintain the activities in the online training platform.

The marketing costs were determined based on the marketing activities. The main activities will include campaigns on social media platforms, leaflets, and newspaper advertisements. Salaries expenses were determined based on the number and positions of other staff in the project, such as the customer service representative who will be responding to inquiries on the online training platform and following up to ensure that those using the platform do not experience any challenges, the platform designer and the sales representatives. The expenses may change based on the changes in expenses influenced by factors beyond the business’ control, such as venue costs, the cost of the Learning Management System and the software needed to create and manage the online platform, and the cost of the laptop and projector.

References

Spielman, E. (2018, April 20). Direct costs vs. indirect costs: What’s the difference? Business News Daily. https://www.businessnewsdaily.com/5498-direct-costs-indirect-costs.html

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Finalize the budget draft you created last week in Microsoft® Excel®. Address the following as you build your budget:

Research and estimate revenues and expenses.
Itemize direct costs.
Determine indirect costs.
Include any in-kind contributions.

Write a 525-word budget narrative in which you do the following:

Describe at a high level the various cost categories and expenditures.
Detail the significant items in the budget, including how these expenses and revenues were determined and why they are important.