ACCTG300 Lecture Notes - Lecture 15: Budget, Finished Good, Indian Railways
13 Jul 2018
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Document Summary
Advantages of budgeting de ne goal and objectives think about and plan for the future means of allocating resources uncover potential bottlenecks - recognize limitations and areas of concern before coordinate activities communicate plans. Budgeting basics - budgeting and long-range planning long-range planning - has more speci c long term goals and how you get there is pretty vague. The master budget the master budget includes: sales budget, production budget, direct labour budget, cash budget, ending nished goods budget, direct materials budget, selling and administrative budget, manufacturing overhead budget all goes into the budgeted financial statements. Units shows the units that must be produced to meet anticipated sales derived from sales budget plus the desired change in ending nished goods - ending nished goods less the beginning nished goods units. Labour cost shows both the quantity of hours and cost of direct labour necessary to meet production requirements critical in maintaining a labour force that can meet expected production.
