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Steps in Budget Creation

What are the steps of the creation of a project supply, service, and material budget from detailed requirements.

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Project Budget

To prepare a budget for supply, service and material in a project is crucial for effective implementation of the cost to the available resources. The steps involved in the creation of a project budget are as follow:

Identification of the Needs of Supply, Service and Materials:
For effective implementation of the project, there is requirement of identifying the needs of procurements. There may be supplies of different materials and services such as raw materials, equipments, technology, computer services, maintenance services, etc. These all materials and services should be related to the project and its activities. In detailed requirements, it is necessary to choose particular services and materials that can be used in the project (Larson & Gray, 2006).

Selection of Alternatives:
In the market, there are different alternatives for the required material, supply and service. In condition of more cost for any item, company considers another alternative for the required item. This decision can be taken on the basis of the results of cost benefit analysis. In framing of budget, there is need to include different alternatives of the requirements that assure the availability of the resources as per the budget limits. It is helpful to build successful budget ...

Solution Summary

The steps of the creation of a project supply, service and material budget from detailed requirements are examined.