Assignment
For this assignment, you are going to make e a budget for one of the department's on Netflix's income statement under Technology and Development for 2021
The Actual for Technology and Development expenses were 1,829,600. This amount will be broken out into four departments equally:
Cybersecurity - 25%
Research - 25%
Development - 25%
I.T. - 25%
The company has decided to use incremental budgeting and is granting each department a 5% increase for 2021.
You are to select one department and create an overhead budget for 2021.
The first step is to calculate the 2021 department budget given the 5% increase.
Then, you will need to come up with a set of assumptions:
How many employees are in the department?
a) How much do they get paid?
b) Will some employees attend training sessions over the course of the year?
c) For those employees attending training sessions, will there be travel involved?
d) How much will be provided for meal reimbursements for those that attend the training sessions?
e) What is the departments monthly supply budget?
f) What is the departments monthly rent?
You can use the attached Excel spreadsheet, to make assumptions and plot them out onto a one-year budget, by month. You must include a minimum of six line items (expense categories).
Remember, your ending budget should equal the amount you initially calculated. This is an overhead budget therefore, there should be no expenses such as materials cost, or labor to produce a product, nor should there be any sales data.