Types and budgets, Requirements for Master Budget

July 2022 | 9 pages | ID: T542A0C26952EN
Sadia Saeed

Abstracts

The collection of various financials pans such as budget of sales, budget of production, budget of direct material and direct labor, budget of overhead, budget of sales and budget of selling and admin expenses is known as master budget. Various companies makes master financial plan for diverse time periods. Some companies make master financial plan in a month or in quarter, while other makes master monetary plan for a complete year. The master budget contains information about managerial tactics to achieve goals, corporation’s enduring objectives and assistance of master budget in completing particular goals (Shinoda, 2010).

The importance of master budget cannot be denied as it is core tool of planning that an administration team utilizes to lead the acts of a company. The management assesses the performance of numerous accountability centers through master budget. It is main responsibility of the administration to reassess various components of master financial plan and include changes till it appears at a financial plan that assigns finances to attain the set outcomes. The financial plans that turn up the master financial plan contain:

• Budget of direct labor
• Budget of direct materials
• Budget of finished goods
• Budget of overhead
• Production budget
• Budget of sales

Various other budgets are also included in budget of selling and admin expenditures.(continued...) wordcount of report: 1000 words

Contents

Introduction
Direct Materials Budget
Example
Direct Labor Budget
Example
Overhead Budget
Example
Budget of ending goods inventory
Example
Production Budget
Example
Sales Budget
Example
Cash Budget
Example
References