Associate Level Material
Directions: Using the matrix, define each of the budgets listed and briefly describe its uses.
|Budget |Definition |Describe its uses | |Sales budget |An estimate of expected sales for the budget period. |Is used to compare actual sales volume to revenue for a specific| | | |period. The sales budget serves as a basis for other business | | | |budget as well as for identifying needed process improvements | | | |and to determine price increases, and inventory. | |Production budget |A projection of the units that must be produced to meet |Is a financial plan used by manufacturers to estimate the cost | | |anticipated sales. |of manufacturer a product. | |Direct materials budget |An estimate of the quantity and cost of direct materials to be |Analyzes the amount of raw materials that a manufacturing | | |purchased. |company needs to purchase to meet the required level of | | |...
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