how would you go about computing the budget for this project? course hero

How do you manage a project when it runs over budget?

and calculate the project budget. Detailed explanation can be found in the attached MaryCrest Manor Infrastructure Upgrade Phase I - Cost Estimate. The total estimated costs are below: Total Estimated Costs Category Estimated Cost Hardware $ 294,100 Software $ 55,650 Personnel $ 154,830 Misc. Costs $ 15,470 Total $ 520,050 3.

How to create a budget for a project?

the project and incur added costs allowing the project to go over budget. The part is critical to the configuration of other parts needed in the interface. Locomotive engineers have expressed concern for the user training being conducted too late in the plan, not allowing for proper training and acquaintance with the new system. The union representative has expressed a concern that …

What is the purpose of the budget?

Dec 20, 2018 · 2. The project manager for a large project being developed in northern Ontario recognizes that it will be necessary for her to maintain a close presence at the construction site during its development and has negotiated the use of a building for her team near the construction project. The cost of the building must be factored into the project cost and will …

What are the components necessary to build a budget?

An accountant prepares the production budget by following four steps: 1. Enter budgeted sales units from the sales budget. 2. Calculate budgeted ending inventory units for the period. 3. Add budgeted ending inventory units to budgeted sales units to determine the number of units required during the period. 4.

What is a project budget?

A project budget is the total projected costs needed to complete a project over a defined period of time. It’s used to estimate what the costs of the project will be for every phase of the project. The project budget will include such things as labor costs, material procurement costs and operating costs. But it’s not a static document.

What are the components of a project budget?

As noted above, there are many components necessary to build a budget, including direct and indirect costs, fixed and variable costs, labor and materials, travel, equipment and space, licenses and whatever else may impact your project expenses.

Why is a project budget important?

The other part of the importance of a project budget is that it’s an instrument to control project costs. The budget is your plan, which acts as a baseline to measure your performance as you collect the actual costs once the project has been started.

What happens if you don't have funds?

If you don’t have the funds, you’re not going to complete the project successfully. That’s why project planning and budget is so important: it’s the lifeblood of the project. Follow these steps to secure the funds necessary to support the project through every phase. But first, we need to define what a project budget is.

Why is it important to have a project management software?

The importance of having a project management software that tracks in real time, like ProjectManager, is that it gives you the information you need to get back on track sooner rather than later. Things change and projects go off track all the time. It’s the projects that get back on track faster that are successful.

What happens if your software isn't cloud based?

If your software isn’t cloud-based and updating as soon as your team changes its status, then you’re wasting valuable and expensive time.

Is it good to look back at similar projects?

Your project is likely not the first to try and accomplish a specific objective or goal. Looking back at similar projects and their budgets is a great way to get a headstart on building your budget.

What is a project budget?

The project budget describes the monetary aspects of the project and explains exactly, which areas of how much money should be spent. A project budget simply refers to a document that specifies how the money will be allocated to implement the activities described in the proposal. The budget gives a clear picture of all expenditures involved in ...

What is the difference between a budget and a project?

The budget gives a clear picture of all expenditures involved in carrying out a project. The project description provides the picture of your proposal in words, whereas the budget further refines that picture, but with numbers. In short, a budget is a description of the project in numbers. While there are many ways to organize a budget, most are ...

How to organize a project budget?

There are two main ways to organize a budget: by activity or by line item.

When should you include a budget narrative?

You should include a budget narrative when a specific item is more expensive than usual or does not directly and obviously relate to the project. One example where I included a budget narrative is a project where materials had to be transported on a river. One way was downriver, one was upriver.

How to make sure your budget is self-explanatory?

Make sure your budget is self-explanatory. If something needs further explanations, make sure they are right there and easy to find. Costs that are extraordinarily high need extra attention to make sure your donor does not think you are trying to take advantage of them.

When writing a budget, should you always work with real numbers?

When writing your budget, you should always work with real numbers. Do not underprice or overprice, because both things can become a problem for you . If you state prices that are too low, you will have problems implementing your project later. If they are too high, the donor might notice and not give you the grant. Be realistic in your budget.

Do not write a budget by yourself?

Do not write the budget all by yourself. While one person should have the lead on the project, you should seek the input of various people in your organization. You might forget something or lack detailed knowledge in some areas. Take advantage of the combined knowledge in your organization.