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Budgeting

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					      Budgeting

Gretchen Getz
         6 Types of Budgeting
•   Zero-Based
•   Fixed
•   Variable
•   Lump Sum
•   Line Item
•   Performance
       Zero-Based Budgeting
• justify every expense w/out reference to
  previous spending patterns
• excellent tool for developing priorities
  – rank each item according to importance
• include a rationale for each item
  – explain why expense is necessary
  – any alternatives?
           Fixed Budgeting
• project expenditures and income on a
  month-by-month basis
• used more by businesses
         Variable Budgeting
• expenditures are adjusted according to
  revenues
  – can only take out what you get in
       Lump-Sum Budgeting
• fixed amount of money
• spend it any way you want
• use where you feel most important
             Line-Item Budgeting
• list anticipated
  expenditures for specific
  categories
   – i.e. tape, travel, insurance,
     phone
• money designated on one
  line can’t be used in
  another
• Advantage: easy to
  prepare and understand
• Disadvantage: limited
  flexibility because money
  doesn’t transfer
       Performance Budgeting
• allocates funds for
  discrete activities                        Rehab



• put the money towards
  jobs you do
• more for businesses     Administration   Activities   Injury treatment




                                           Team prep.
               Our Budget
• $26,000/year
• Type???
  – Hint:



• budget/sport (avg.): $1,625
                    Group 1
• Zero-Based Budget
• $10,000
• Last year:
  –   Tape: $3,000
  –   US Machine: $3,000
  –   Crutches/Splints: $2,000
  –   First-Aid Supplies: $2,000
                Group 1 cont.
• This year: $10,000
  –   Stim Machine: $6,000
  –   Tape: ???
  –   First-Aid Supplies: ???
  –   Rehab. Equipment: ???
• Where do you spend the rest of the money?
  Why?
                 Group 2
•   Lump Sum Budget
•   $26,000
•   You can spend the money where you want
•   How would you spend it?
                 Group 3
• Line-Item Budget
• $20,000
• Come up w/ 10 items
• I will give you the amount of $ you spent
  last year
• What do you do for this year’s budget?
ANY QUESTIONS???
                            References
•   Rankin JM, Ingersoll CD. (2001). Athletic Training Management: Concepts
          and Applications. 2nd ed. New York, NY: McGraw Hill.
•   Ray, R. (2005). Management Strategies in Athletic Training. 3rd ed. Illinois:
          Human Kinetics.

				
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