CH 22 Master Budget Components
Operating Budgets
These budgets focus on Revenues and Expenses, items found on the income statement
DM DL MOH budgets
COGS Budget flows from ..... , ....... , and ......
Sales Budget Production Budget DM budget, DL budget, MOH budget COGS Budget Selling and Administration Expense Budget
The Operating budget consists of:
Cash Budget
The budget that shows inflows and outflows of cash and how to get to desired cash balance
Cash budget Budgeted income statement Budgeted balance sheet Budgeted statement of cash flows
The financial budget consists of:
operating budget capital expenditures budget financial budget
The master budget includes three types of budgets:
Budgeted statement of cash flows
This statement is usually the last to be completed in a financial budget 3 sections: operating, investing, financing
Budgeted income statement
This statement uses the operating budgets
Production Budget
used to prepare the DM, DL, and MOH budgets
Sales Budget
used to prepare the production budget