acc220_appendix_c - Axia College Material Appendix C...

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Axia College Material Appendix C Budgets Matrix 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. Forecast and analyzes necessary volume of products/services that will potentially be sold. Production budget A detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs. Predicts and analyzes the amount of products/services that have sold in previous time periods and helps to know what the demand is for each unit, or what units/products may need to be cut from inventory. Direct materials budget An estimate of the quantity and cost of direct materials to be purchased. It is used to estimate the amount of raw materials that must be purchased during a specific period in order to meet the production that is anticipated. Direct labor budget
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acc220_appendix_c - Axia College Material Appendix C...

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