Budgeting for an SAE Project

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Budgeting for an SAE Project
Modified by Georgia Agricultural Education
Curriculum Office July, 2002
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Objectives

• Define budget
• Explain budgeting process
• Explain types of budgets
• Complete a partial decision
• Complete a cash flow budget

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BUDGET

• A plan for income and expense over a given period
  of time.

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Purposes of budget

• Assist in decision making
• Go/No go decisions
• Compare alternatives
• Best combination of resources
• Plan financing

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Budgeting Process

• Forecast types of expense items
• Estimate amounts of each input
• previous records
• efficiency factor tables
• estimate costs of each input
• get prices from suppliers
• Estimate amount of goods and services that
  should result
• previous records
• efficiency factor tables
• Estimate income from each good or service
• Subtract forecast expenses from forecast income

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Partial Budget

• Compare effects of alternative solutions to a
  single decision. Should I purchase the 42"
  riding mower or the 30" riding mower?

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Unit Budget

• Estimate income and expenditures for the fiscal
  or calendar year at the unit level, such as per
  acre.

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Enterprise Budget

• Estimate income and expenditures for the fiscal
  or calendar year for the specific enterprise,
  such as my snow removal enterprise

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Total Budget

• Estimate total income and expenditures for the
  fiscal or calendar year for the person or family.
  What net income can I expect for the year from
  all my combined efforts?

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Cash Flow Budget

• A budget in which income and expense forecasts
  are allocated by week, month, quarter, or other
  period as appropriate to the business.

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