Flora Is Preparing the Budget Section of a Business Proposal

question 56

Multiple Choice

Flora is preparing the budget section of a business proposal, and she needs to include an estimate of the cost of hiring a graphic designer to produce promotional materials. The standard rate in her area is $50 per hour, but Flora knows several competent designers who would likely be willing to do the work for around $30 per hour. How should she budget for graphic design?

• A) Use the $50 per hour rate to ensure sufficient funding even after cuts.
• B) Use the $30 rate to make her total costs more attractive to funders.
• C) Make two separate budgets based on the $30 and $50 rates.
• D) Leave that section empty and explain the situation in a footnote.
• E) Use a figure somewhere between the high- and low-end estimates.

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Definitions:

Decision method

Refers to the systematic process or technique used to make choices or solve problems.

Lunch schedule

A designated time period set aside during the day for a meal break, typically in educational institutions and workplaces.

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Vroom, Yetton, and Jago

Scholars associated with the development of a model for situational leadership and decision-making processes within organizations.