Master budget framework, Cost Accounting

Master Budget Framework

The master budget is the overall quantifications of the budgeting plan. In this, functional budgets are not corporate. A functional budget is a budget if income and or expenditure for a particular function. Therefore the master budget combines all the budgets of the different departments in organizations. It is useful in ensuring about all the individual budgets are consistent along with one another and presents also a 'unit' picture of the whole organization.

It is made up of both non-production and production budgets.

835_Master Budget Framework.png

Production budgets include:

- Sales Budget

- Finished Goods Budgets

- Material budges

- Labour budgets

- Overheads budgets.

Non-Production Budgets Include

- Selling & Distribution

- Administration Budget

- Cash Budget

- Research and Development - Capex

- All these budgets translate into the projected profit and loss a/c and the budgeted Balance Sheet.

- The relationship between all these budgets is summarized in the figure.

Posted Date: 2/7/2013 3:17:45 AM | Location : United States







Related Discussions:- Master budget framework, Assignment Help, Ask Question on Master budget framework, Get Answer, Expert's Help, Master budget framework Discussions

Write discussion on Master budget framework
Your posts are moderated
Related Questions

. Which of the following is a reason why traditional product costing techniques have become obsolete in a lean operating environment? a. More complex accounting is required in a le

Manufacturing statements and cost behavior  Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-g

Weighted Average Method - Work in Progress While this method is employed, all costs of production are considered in assigning costs to inventory. The method puts together open

Labour Costs Definition of Labour Cost A labour cost refers to all the costs incurred in compensating the human resources used in the production process to provide a us

The following information relates to Araceli Manufacturing Company: total estimated manufacturing overhead cost at beginning of year $864,000 predetermined overhead rate (based

The number of workdays varies from month to month due to the number of weekdays, holidays, days of vacation, and sick leave taken in the month. The number of units produced in a

Direct Material Cost Variances (DMCV) This variance is a general difference in the standard direct material cost and the actual direct material cost. This variance may be prese

A job order cost sheet for Lowery Company is shown below Date Direct Materials Direct Labor Manufacturing overhead Beg Bal Jan 1 5,000 6,000 5,100 8 6,000 12 8,000 6,400 25 2,000 2

Purposes of standard cost accounting connection - suppose you were a management consultant and the client asked you the advantages and disadvantages of using standard costs and cos