Budget Assignment

Definition of a budget:

A budget is a financial document that contains an itemized summary of estimated or

intended expenditures for a given period of time. In essence, it's a plan for allocating
financial resources.

Upon completion of this assignment, you will be able to:

 Complete a budget.
 Add, subtract, multiply and divide decimals.

Part 1. Complete a business budget.

Instructions: Take a moment to think about the costs of running an office. Complete a
business budget base on the scenario below.

Scenario:
Title: Office Administrator.

Company: Ladhani & Penn Law Office

Task: Your boss, Anne Penn, has asked you to create a monthly budget for the law
office. You have a total budget of $17,000. Below are some details that will help you
create the budget. Complete the “Planned Expenses” column of the budget so it
totals $17,000.

 Rent – $2850.00
 There are five lawyers and two office administrators at the firm that require
parking spaces. Each parking spot costs $52.00 a month; the company pays this
expense for each employee.
 Utilities are included in the cost of rent.
 Insurance costs $356.00 a month
 Each fax and copy costs $0.03 per page, the office generally goes through 7,500
per month
 Advertising is a priority of the law firm –using internet resources, you will
be researching and determining appropriate amounts to be spent on
marketing (brochures, website, business cards, advertising); you will need
to cite your sources.

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  Phone/Internet – there are seven phones/extensions plus the fax line to pay
plus internet connection which comes to $34.17 per line
 Office cleaning service costs $450 a month
 Office supplies comes to $650 per month
 Copy machine rental is $57 per month
 Shredding service is $165 per month
 Mileage costs are $0.45 per kilometer per month and mileage is generally 1,475
kilometers per month
 Mailing costs are $470 per month
 Monthly salary for the two office administrators – by using internet
resources, you will be determining appropriate salary levels for the office
administrators; you will need to cite your sources.

Create a one paragraph statement explaining your budgeting choices. The purpose of
this is to explain to your boss why you distributed the money the way you did.

Use the internet to find some prices for salaries for the two office administrators,
brochures, business cards, website and advertising to support your planned expenses.
Include citing for the sites you used to determine the costs for the two salaries,
brochures, business cards, website and advertising (your choice for magazine,
newspaper, television and/or radio ads) and include a bibliography or works cited as the
last page of your budget submission.

*Your submission must be a unique and original submission based on the

choices you made in relation to marketing and salaries. While collaboration
during class is permitted, your submitted assignment must be an original
document created and decided on by you; failure to do so will result in an
Academic Integrity Alert and a grade of zero.

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 Ladhani & Penn Law Office Budget

Expense Category Planned Expenses Actual Expense Difference

Building Rent/Lease $2850.00
Equipment Rent/Lease
Phones $307.53
Copy Machine $57.00
Salaries $7396.48
Operating Expenses
Utilities $0.00
Insurance $356.00
Cleaning $450.00
Other
Administrative Expenses
Fax/Copies $225.00
Postage $470.00
Office Supplies $650.00
Shredding $165.00
Other
Marketing Expenses
Brochure $90.00
Website $40.00
Business Cards $25.00
Advertising $2840.00
Other
Administrative Expenses
Vehicle Expenses
Mileage $663.75
Parking $364.00
Travel
Other
Miscellaneous
Total Expenses $16,949.12

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 For this budget I chose to use the cost-effective choice of vista print for all of our
marketing products. They handle everything from business cards to website design and
domain effectively. I felt by taking this choice, it allowed us to spend a little bit more on
new paper advertising and promote the business in an effective way. We can always
advertise through social media as well. A newspaper ad gives us access to be on ad in
print and online giving us twice the audience. I feel this budget would be extremely
effective and it comes in just under our allotted budget of $17,000.

(n.d.). Retrieved March 28, 2019, from https://www.vistaprint.ca/

Advertising Rates – Canada. (2014, December 12). Retrieved March 28, 2019, from

https://graphicartsmag.com/advertise/rates-canada/

Office administrator salary in Canada. (n.d.). Retrieved March 28, 2019, from

https://neuvoo.ca/salary/?job=office administrator