Explain what the production budget calculates and how the production budget would affect other operating budgets and the financial budget. 2. Which budget is the first one that must be completed in the master budgeting process and why?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
1. You are the senior accountant at Cannon Manufacturing and have been asked by the budget director to prepare the production budget for the upcoming quarter. The budget director stated that they chose you to prepare this budget because it is an important part of the overall operating budget and financial budget.
Explain what the production budget calculates and how the production budget would affect other operating budgets and the financial budget.
2. Which budget is the first one that must be completed in the
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