Chapter 8 Master budgeting

Budget

Is a planning and control tool. Starts with the sales forecast.

Cash Budget

Prepared near the end of the master budget process. It is calculated by adding the desired ending cash balance to the amount of the cash deficiency. Looks at cash coming in and how much cash you plan to spend.

Production Budget

The direct materials budget directly relies on the:

Direct Labor Budget

The number of working hours required to satisfy the production budget is shown on this budget

Selling and Admin Expense Budget

Budgeted expenses for areas other than manufacturing are shown on the ______ budget.

Continuous Budget

a financial planning approach where a company adds an additional month or quarter to its budget as each period passes. Constantly having those 12 months.

Manufacturing Overhead Budget

All costs of production other than direct materials and direct labor are shown on the ______ ______ budget

Sales Budget

Both the production and selling and administrative expense budgets are prepared using information directly from the ________ budget

Direct Material Budget

In a manufacturing company this budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories. Concerned with beginning and ending inventory.