In a 1-2 page paper, please complete the following:
The master budget is comprised of several interrelated budgets that indicate a plan of actions and is presented for a specific period of time (monthly, yearly, etc.).
The sales budget is the first budget that is created. The sales budget is created by an earlier sales forecast that gives an estimate of expected revenue for a period.
The production budget gives an indication as to how many units are to be produced to meet sales goals.
Direct Materials Budget
The direct materials budget gives information relating to the quantity and cost of the items that will be used for production.
Manufacturing Overhead Budget
The manufacturing overhead budget gives information relating to the expected manufacturing costs for a period. The budget shows the different fixed and variable cost amounts.
Selling and Administrative Budget
The selling and administrative budget shows a projection of anticipated operating expenses relating to sales and office personnel. This budget also shows the different fixed and variable cost amounts.
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