accounting ch 8

Manufacturing Overhead Budget

A detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time period.

selling and administrative expense budget

A detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period.

master budget

A number of separate but interdependent budgets that formally lay out the company's sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.

continuous budget

a 12-month budget that rolls forward one month as the current month is completed

ending finished goods inventory budget

a budget showing the dollar amount of unsold finished goods inventory that will appear on the ending balance sheet

budget

a detailed plan for the future that is usually expressed in formal quantitative terms

cash budget

a detailed plan showing how cash resources will be acquired and used over a specific time period

Direct Materials Budget

a detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories

Production Budget

a detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs

Direct Labor Budget

a detailed plan that shows the direct labor-hours required to fulfill the production budget

Sales Budget

a detailed schedule showing expected sales expressed in both dollars and units