General Business ACC212 Chapter Notes - Chapter 10: Budget, Income Statement
29 Nov 2017
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Document Summary
Contains two classes of budgets: operating budgets: Individual budgets that result in the preparation of the budgeted income statement establish goals for sales and production personnel: financial budgets: The capital expenditures budget, the cash budget, and the budgeted balance sheet focus primarily on cash needs to fund operations and capital expenditures. Derived from the sales forecast: management"s best estimate of sales revenue for the budget, every other budget depends on the sales budget period. Prepared by multiplying expected unit sales volume for each product and anticipated unit selling price. Expected sales volume: 3,000 units in the first quarter with 500- unit increments for each following quarter. Shows the units that must be produced to meet anticipated sales. Derived from sales budget plus the desired change in ending finished goods (ending finished goods less the beginning finished goods units) Hayes co. believes it can meet future sales needs with an ending.
