
Operating Budget and
The Operating budgets are the budget which have been prepared for the coming year for various departments to be taken as target to be achieved for various departments. The Initial step in preparation of Operating budget is the preparation of Sales Budget and on the basis of this budget, the production budget is prepared. After making the production and sales budget, various other cost budget shall be prepared like labour, manufacturing
When all the operating budgets are prepared, then the cash budget is prepared on that basis after making analysis of cash receipts and payments during the period.
Requirement1:
The preparation of sales budget.
Requirement2:
The preparation of Production budget.
Requirement3:
The Statement showing expected cash receipts during the period.
Requirement4:
The Preparation of Material Purchase budget in $.
Requirement5:
The Statement showing expected disbursals for material purchases.
Requirement6:
The Preparation of Budgeted labour cost.
Requirement7.
The preparation of Manufacturing Overheads cost budget.
Requirement8.
The Preparation of Selling and admin overheads.
Requirement9.
The Preparation of Cost of Goods sold budget.
Requirement10.
The preparation of cash budget.

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