Budgeting for an SAE
Project
Modified by Georgia Agricultural
Education Curriculum Office
July, 2002
Objectives:
 Define budget
 Explain budgeting
process
 Explain types of
budgets
 Complete a partial
decision
 Complete a cash
flow budget
BUDGET
A plan for
income and
expense
over a given
period of
time.
Purposes of budget:
 Assist in decision making
– Go/No go decisions
– Compare alternatives
– Best combination of
resources
– Plan financing
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
Partial Budget
 Compare effects of
alternative solutions
to a single decision.
Should I purchase
the 42" riding mower
or the 30" riding
mower?
Unit Budget
 Estimate income
and expenditures for
the fiscal or
calendar year at the
unit level, such as
per acre.
Enterprise Budget
 Estimate income
and expenditures for
the fiscal or
calendar year for the
specific enterprise,
such as my snow
removal enterprise
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?
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.
BUDGET WORKSHEET
Partial/Unit/Enterprise/periodic Budget for: January, 2000
Snow Clearing
Expense Item
Gas
Payment on snow blower
B
Quant/
Unit
Unit
Cost
Total
Cost
10 ga
1.119
11.90
1 ea
179
179.00
Advertising
20.00
Service Plan
12.50
TOTAL
Unit
Cost
Total
Cost
Quant/
Unit
Unit
Price
Total
Income
223.40
Income Item
Quant/
Unit
Unit
Price
Total
Income
Clearing, hours
25 hrs
25.00
625.00
TOTAL
Quant/
Unit
625.00