ACC 220 Week 7 CheckPoint Budgets Matrix

ACC 220 Week 7 CheckPoint Budgets Matrix - Axia College...

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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 A sales budget is an operating plan for a specific period and it is expressed in terms of volumes of sales and the selling prices for each class of product or service. The sales budget is considered the starting point of budgeting as all other items are influenced by the sales volume. Production budget It is the statement containing the data of expected units to be produced. It gives a clear picture of the number of units to be produced to satisfy budgeted sales and inventory requirements. The expected production volume is determined by adding desired closing stock to the sales and then deducting the opening stock. Direct materials budget It is a schedule which shows the required amount of material for production and the amount of material that must be purchased to meet the production requirement.
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This note was uploaded on 01/24/2012 for the course ACC 220 ACC 220 taught by Professor Black during the Spring '11 term at University of Phoenix.

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ACC 220 Week 7 CheckPoint Budgets Matrix - Axia College...

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