Prebudget is estimated based upon the income and expenses which were already determined in the proposal, according to the values of a CPM solution. Income is related to the production and the sales price of the production at some future period. The distribution of the production over time is determined in the work schedule. The material requirement which is also determined in the work schedule is the budget expense and can be retrieved and reported periodically. To calculate a prebudget:
- The resource costs of the activities
- The estimation of the inflation
- The sales prices of the productions related to those activities at a certain period
These above are found in the Unit Price and Analysis databanks. The “Prebudget” is formed using the data received from those databanks and the CPM Software.