Budgeting Map

MASTER BUDGET

Sales Budget

Based on sales forecast

Represents cash inflow

ProductionBudget

Units to meet expected sales

Satisfy ending inventory requirements

Ending Inventory Budget

BEGINNING

Direct Materials Budget

Manufacturing Overhead Budget

Direct Labor Budget

Raw Materials used in production process

Required workers & working hours needed

Indirect costs related with production process

Indirect labor, Indirect materials, difficult to trace

Selling & Administrative Budget

Costs not related with manufacture process

Cash Budget

Contains all cash inflows & outflows

Ignores borrowing & investments

Budgeted Income Statement

Predicted future income statement if budgeting plan remains true

Budgeted Balance Sheet

Predicted future balance sheet if budgeting plan remains true

Balance of assets, liabilities & equity accounts

Complete earnings & expenses

Bibliography:

https://www.thebalancesmb.com/budgeting-what-is-a-master-budget-393049

Set goals and objectives

Correctly allocate resources

Broad overview, used as a central planning tool

Coordinate all activities

Contains all levels of the company