ACCT20200 Chapter Notes - Chapter 8: Income Statement, Budget, Lastminute.Com
Document Summary
Master budget: consists of a number of separate but interdependent budgets that formally lay out the company"s sales, production, and financial goals. A budgeted balance sheet: first step in the budgeting process= preparation of the sales budget. A detailed schedule showing the expected sales for the budget period. Accuracy of this budget is key to the entire process. Influences the variable portion of the selling and administrative budget and feeds into the production budget. Defines how many units need to be produced during the budgeting period. Used to determine the direct materials, direct labor, and moh budgets: concludes with the preparation of the cash budget, income statement, and balance sheet. A detailed plan showing how cash resources will be acquired and used. Must be accurate or the rest of the master budget will be inaccurate: production budget: Lists the number of units that must be produced to satisfy sales needs and to provide for the desired ending finished goods inventory.
