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Budgeted income statement is prepared at the last after preparing all other budgets and sales budget is the starting point of budgeting process.
A sales budget should be prepared before the production budget?
The budget that is prepared for one level of activity is known as a static budget. A static budget is often one of many other budgets that are created off of a master budget.
Sales budget provides the information about how many units of products needs to be sold and it is the basic information on which remaining budgets are prepared like production budgets or proforma financial statements.
Flexible budgets are prepared for different capacity levels like normal capacity, optimistic capacity and pesimistic capacity based on actual budgets.
Budgeted income statement is prepared at the last after preparing all other budgets and sales budget is the starting point of budgeting process.
Budgets promote efficiency and serve as a deterrent to waste? A sales budget should be prepared before the production budget?
A sales budget should be prepared before the production budget?
The budget that is prepared for one level of activity is known as a static budget. A static budget is often one of many other budgets that are created off of a master budget.
Sales budget provides the information about how many units of products needs to be sold and it is the basic information on which remaining budgets are prepared like production budgets or proforma financial statements.
Flexible budgets are prepared for different capacity levels like normal capacity, optimistic capacity and pesimistic capacity based on actual budgets.
Master budget is the overall financial budget of company which includes budgets as follows:Sales BudgetProduction budgetSelling and administration budgetsCash budgetPro forma Income Statement & balance sheet etc.
Master budget is the overall financial budget of company which includes budgets as follows:Sales BudgetProduction budgetSelling and administration budgetsCash budgetPro forma Income Statement & balance sheet etc.
A master budget is comprised of operating budgets and financial budgets.
production budgets are used to prepare which of the following budgets
Direct labor budget is prepared during planning stage before the actual production starts.
A financial statement needs to be prepared for all large companies as part of the Accounting Standards. It is a legal requirement to do so. It will provide a record of the financial position of the company, from which calculations can be made (i.e. ratios) which can be compared to former years to analyse how the company is doing financially. The result of these ratios can aid in the preparation of budgets. Certain budgets need to be increased, other may need to be decreased or removed. With budgets it is important to compare budgeted cost to actual cost and analyse the variations to determine the efficiency of operations for the specific department or item that the budget was allocated for.