ACC220WK7CKPT (2) - 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 Is a budget which contains all of the sales figures prediction that will happen for the company in a month time or could be in a yearly plan. This budget represents for the management’s most knowledgeable thought of the sales for that particular budget period. This sales budget will show the sales that have been made and not made. Management will be able to make better business decisions from this. This type of budget is made to help to determine if sales predictions and goals are being met. If they are not being met to come up with a better plan of how the company can make these goals happen. Preparation of the sales budget is the starting point for the master budget. It sets the level of activity for other functions such as production and purchasing. Production budget This budget shows by the units what must be produced to meet anticipated sales and projected goals. Also to show how much it will cost the company to produce these units, in cost of labor and paying employees, overtime there can be many expenses in a production budget that a company has to be able to cover through sales made. A production budget is used to tell the
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This note was uploaded on 01/07/2012 for the course COM 155 155 taught by Professor Shepherd during the Spring '10 term at University of Phoenix.

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ACC220WK7CKPT (2) - Axia College Material Appendix C...

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