AC Project Issues - Essay Example

We have set a budget of $ 132000 for software expenses. The cost includes an allowance that will cater to unexpected costs during the writing of different software. Travel expenses will amount to $ 71500. This amount will meet the travel demands of our team as we seek to participate actively in the growth of this company. To cover all the depreciation costs, we will require $255,000. Due to the complexity of the tasks being performed by this department, various unplanned costs are bound to be incurred. To cater for such miscellaneous costs, the department will require $ 110000. We hope that our budget demands will be looked into so that we can have a successful business year this year. The figure below shows an outline of the proposed budget.

Our company has been very successful in recent years. The massive financial support to the sales department has been of great importance. This year, our budgetary expenses are bound to reduce by a small percentage. This is because most companies have already invested in communication software and hence there are few numbers of potential customers. We expect to maintain our past growth rate despite this challenge. To achieve this, we will lower our sales revenue expenses to $4, 500, 000. This amount will be sufficient to help us reach the available customers in the market. The salaries for our staff will amount to a total of 360000. This amount will help us maintain our competent employees and hire more qualified employees if the need arises. The nature of our duties demands a lot of traveling. The travel expenses are estimated to amount to $210,500. Compared to the previous years, this amount has been lowered since the number of available customers has decreased. The total amount for the proposed budget is $507000. With this budget, we will be able to maintain our growth level and hence move the company to another level of success.

Our division has enjoyed continued support from the overall management of the company. As the division’s manager, I have conducted discussions with the sales and development departments, and together we have developed a budget for our next financial year. The development department will require $3208500 to cater for all its expenses this year. This amount has been strategically distributed over expenses such as salaries, software, depreciation, and miscellaneous expenses. The sales department will require $507000 to cater to budgetary needs this year. This amount will cater for sales, salaries, and travel expenses which are the main requirement in that department. The department will incur an overhead cost of 390000. The proposed total budget for my division is $4105500. The outline of the budget is presented below.