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Define numerous department budgets

Directions: define each of the budgets listed and briefly describe its uses.

1.Sales budget
2.Production budget
3.Direct materials budget
4.Direct labor budget
5.Manufacturing overhead budget
6.Selling and administrative expense budget
7.Budgeted income statement
8.Cash budget

Solution Preview

A budget is a financial expression of management decisions or plans for the future. Budgeting is primarily attention directing information. It is for information gathering, planning and control purposes.

A Sales budget is an operating plan for a period expressed in terms of sales volume and selling prices for each class of product or service. Preparation of a sales budget is the starting point in budgeting since sales volume influences nearly all other items. The Sales Manager is generally responsible for completing this task. The Sales budget is the most important budget when preparing the overall forecast for the entire organization.

Production budget includes a ...

Solution Summary

Defining each budget and its uses.